Elections & Economy: India’s financial Symphony
16 May 2024 2 mins Stock Markets
Renowned author and serial entrepreneur Dr. Sheetal Nair elucidates the intricate matters raised by his investigation into the crucial relationship between elections and the Indian economy. His opinions made it possible to comprehend democratic regimes' advantages and disadvantages, as well as how elections affect the financial system.
Following the historic 1991 general election, the administration of Prime Minister P.V. Narasimha Rao oversaw significant economic progress. These reforms aimed to liberalize the Indian economy, attract international investment, and result in increased capital inflows, technological advancements, and a more favorable business environment.
Similarly, after the 2014 general elections, Prime Minister Narendra Modi proposed projects like "Make in India." These programs sought to boost economic productivity, innovation, and efficiency while also demonstrating policy consistency and strengthening investor confidence.
The effects of election results on investor sentiment and market performance are obvious. Stable administrations with clear economic agendas boost investor trust, resulting in stock market growth and general economic stability. Despite short-term changes, the long-term prognosis is generally optimistic.
The re-election of Prime Minister Narendra Modi's cabinet in 2019 reinforced the continuity of economic measures. Initiatives like business tax cuts and the Atmanirbhar Bharat Abhiyan were intended to boost growth and self-reliance, displaying resilience and adaptability in the face of economic hardships during the COVID-19 outbreak.
Finally, elections in India have a significant impact on the country's economic direction. Regardless of short-term obstacles, the democratic process promotes long-term stability, policy continuity, and growth prospects. Policymakers, entrepreneurs, and investors must traverse the complexities of the electoral landscape with a long-term mindset, acknowledging the long-term consequences of decisions made at these important junctures for the Indian economy.
Reference - https://etinsights.et-edge.com/elections-economy-indias-financial-symphony/
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