With the exit polls of the 2024 General Elections predicting that Prime Minister Narendra Modi will likely return for a third consecutive, the question many market watchers are asking is what this means for the Indian economy and markets?
In an interaction with Business Today, Mohit Batra, Founder & CEO, MarketsMojo, said the next five years will be pivotal in transitioning India from a developing to a developed economy. While India has laid a strong foundation for accelerated growth, sustained efforts are essential to achieve this vision.
“The goal of becoming a $10 trillion economy within the next decade is attainable only with an unwavering focus on reforms. This is not a time for complacency but for doubling down on reform initiatives to achieve unprecedented economic heights. Failure to capitalise on the current momentum could result in stagnation, similar to challenges other BRICS nations face,” Batra said.
He further said that if the Modi government secures a third term, several key areas are likely to be prioritised. In the agriculture sector, the government could enhance farmers’ incomes through improved cold storage facilities and food processing infrastructure. On the other hand, the government may zero in on active pharmaceutical ingredient (API) manufacturing to establish India as a global pharmacy leader.
Batra added that the government may also continue investments in railways and defence to position India as an exporter in these sectors. In the tourism sector, it may develop infrastructure to boost domestic and international tourism. In addition to this, the government may invest in infrastructure to support the China plus one strategy and reduce logistics costs. It may also address unemployment through a push in the manufacturing sector.
The market watcher highlighted that the Modi government has undertaken significant reforms over the past decade, transforming India from being part of the fragile five to the fastest-growing economy globally. “This remarkable progress has elevated the global respect for India and its citizens,” Batra said.
