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The Finance minister Nirmala Sitharaman said on Tuesday that Prime Minister Narendra Modi’s likely third term will be marked by “more governance and less government”, with a continued thrust on an investment-led and inclusive growth strategy, and welfarism that seeks to uplift the poor. It will also be marked by policies for “greater foreign direct investment (FDI), greater openness and greater transparency” in the systems with a lot of technology infusion.
A stable Government, majority Government and a Government with visionary leadership” is a prerequisite for a vibrant and deep financial market. India’s financial markets have far exceeded everybody’s expectations despite the global turmoil. This is aided by robust growth prospects, manageable inflation and political stability at the Central Government level. Affirmative action as regards reservation for socially backward is provided in the Constitution and there is no thought of any kind of changes to it.
The investors need not worry about the stability of Government and continuity in policies as Prime Minister, Narendra Modi is set to return to Government with more BJP representatives. Financial markets depend on stability, depend on tax predictability, depend on policy stability, and they don’t want uncertainty.
There’s absolutely no doubt about the Modi Government coming back with good numbers.
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