Parliamentary elections in India: Stock exchange celebrates election success of Hindu nationalists in India. Domestic exporters are hoping for further opening of the growth market.
The 900 million eligible voters have expressed their confidence in Prime Minister Narendra Modi of the Hindu nationalist BJP party for a second time. His party was able to secure a majority in the Lok Sabha, the lower house of the Indian parliament, leaving the opposition Congress party well behind.
The Indian stock market welcomes the election results with price gains. Modi is still seen as a potent economic reformer in India. The official figures prove him right: at 7,4 percent, India is growing faster than China and could displace Germany from fourth place among the largest industrial nations as early as 2025. Since he took office in 2014, India has been able to... “Ease of Doing Business” Improve the World Bank ranking by 57 positions to 77th place, significantly reduce inflation and get national debt under control.
Positive mood to among German exporters
Last year, Germany exported goods and services worth 12,5 billion euros, an increase of almost 17 percent. German foreign trade is now hoping that Modi will continue to provide a stable and investment-friendly environment. “Despite all the controversy, the vast majority of German managers support Modi’s economic policy”, sees Dr. Johannes Wamser, co-founder and managing director of the India consultancy Dr. Wamser + Batra GmbH, the current mood.
According to the WB Business Climate Index India 51 percent of German companies are optimistic about India. 46 percent expect at least consistent business. Mike D. Batra explains the positive outlook: “Stability and predictability are extremely rare in India. The more will be from the Indian economy in general and foreign investors in particular klare Majorityen – regardless of party – appreciated.”
According to the above-mentioned study, German companies primarily expect the new government to reduce bureaucracy. It is still unclear whether and how Modi will continue his economic reform agenda. However, topics such as internal and external security dominated the election campaign.
