Coalition, weak mandate could hurt ambitious reforms: Fitch
Fitch expects GDP growth to remain rapid at 7% in FY25.
Fitch expects GDP growth to remain rapid at 7% in FY25.
The NDA's relatively slim margin of victory, as well as the BJP's loss of its outright majority in parliament, may delay more far-reaching economic and fiscal reforms, says Moody's.
PM Modi-led Bharatiya Janata Party (BJP) was seen ahead in 239 seats at 7:34 pm while Rahul Gandhi’s Congress was leading in 99 seats.
Chandrababu Naidu-led Telugu Desam Party (TDP), which is leading in 16 seats, is set to emerge as one of the kingmakers.
Indian equity markets have witnessed upswing post the U.S. and Bihar elections, and improved risk sentiment has invited higher capital flows.
Nevertheless, market participants still need to negotiate volatility, says the report.
A detailed look at data reveals that Modi 1.0 had a far superior record on disinvestment compared to UPA 2.0.
Benchmark indices first celebrated Modi’s second victory with all-time highs, and then fell to reality of fundamental challenges for the incumbent government.
With the NDA set for a second term, corporate India says political risk has reduced and market expectation for policy continuity has been addressed.