News By/Courtesy: Vagish | 19 May 2019 11:33am IST

A few bankers, economists, and rating agencies this writer spoke with over the last few days seemed to bet for a second term for Narendra Modi rather than a coalition of Congress-led parties because it is believed India's scattered Opposition parties can keep blaming the Narendra Modi government for partial release or "misrepresentation of official data" or failure to address rural stress, but the fact is that Prime Minister Narendra Modi still has an advantage over the Opposition, which clearly lacks a solid plan to get the country's economy back on track.

In July, last year, ace stock market investor Rakesh Jhunjunwala too said he expects Prime Minister Narendra Modi to return to power in 2019. His reasoning; "What agenda the Opposition has? Remove Modi?" Jhunjhunwala’s question resonated well with a lot of investors looking at investing in India’s largely untapped consumer market. Since 2014, Modi led BJP government has been governing the nation with bringing up economic reforms that need political willpower. Though Congress party has it’s way with the nation, it can be seen to be lacking the will to carry forward the reform agenda.

After the 5 years of the NDA rule, the opposition has criticized the government for it’s inability to publish credible data, demonetization and other alleged poorly implemented actions. Congress furthermore raises the issue of increase of unemployment in the nation in the past five years. However, not even his political enemies can deny that it was during Modi’s rule India got two of its very critical economic reforms passed—Insolvency and Bankruptcy Code (IBC) and Goods and Services Tax (GST). These were pending proposals for at least a decade. Modi also sped up the expansion of the banking sector to rural households and with the help of the Jan Dhan Aadhaar Mobile (JAM) trinity rationalised the subsidy system.The economy's fiscal fundamentals were improved with inflation under control and deficit much lower than the UPA era.

Rahul Gandhi led Congress party has promised the voters through their manifesto in NYAY—a scheme that assures minimum income of Rs 72,000 to the poorest 20 percent of India's population. Farm loan waivers are disastrous to the economy and several petitions have also been filed in order to curtail the said action but the political parties end up there for attracting voters.  Calculation shows that the total burden of Gandhi’s minimum income promise will be Rs 3.6 lakh crore. That’s 1.7 percent of the country’s Gross Domestic Product (GDP). Since the opposition lack a credible plan, the investors prefer Modi as their rescuer.

Section Editor: Shreyashi Tiwari | 19 May 2019 11:38am IST

Tags : #Investors #Market #Prefer #Narendra_Modi #PM #Congress

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