CONSEQUENCES FOR GERMAN (medium-sized) COMPANIES
The good news after the outcome of the Indian parliamentary elections, which came as a surprise to many: Indian democracy works!
India has voted and, to the surprise of many, Prime Minister Modi's national conservative BJP party has lost its absolute majority and fallen well short of its self-imposed goals. This confirms our experience that democratic processes in India - unlike in many other emerging countries - work remarkably well: election results can still be surprising and are not reflexively contested, electoral fraud is not an issue, and party and policy changes are possible.
For you as a German investor, not much will probably change. However, the far-reaching reform plans of the new Indian government "Modi 3.0" will be more difficult and possibly slower to implement. Prime Minister Modi will have a much harder time getting decisions through parliament because for the first time in his political career he is now dependent on allies to govern. In the future, he will have to make compromises at various levels.
The fact that his government cannot unilaterally pass further Hindu nationalist laws, as many feared, will certainly further ensure India's stability. The risk of communal unrest and tensions within corporate workforces is reduced, and the often predicted division of society is less pressing.
- Come and talk to us about your commitment to India. We look forward to exchanging ideas with you. Contact us by email: info@wamser-batra.de, by phone: +49 234 9041836-0 or write us a message on LinkedIn.
