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Modi-Yogi win is not only beneficial for BJP but also for the Indian economy

Akshay Narang by Akshay Narang
11 March 2022
in Analysis
BJP Indian Stock Market
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BJP victory in four out of five Assembly elections helps the party firmly assert itself as the main national party of the country. Meanwhile, investors are also endorsing the ruling party’s big victory. In fact, the grand victory helps the Indian economy in three big ways. Let’s find out.

Stock market boom

Share markets around the world have been hit by the Russia-Ukraine war and there was some temporary impact on the Indian stock market too.

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However, once the Assembly poll results were announced, the Indian stock market witnessed a major rally. Sensex soared by 817 points, whereas the Nifty50 went up by 249 points to close at 16,954.

And this wasn’t surprising. After all, the Indian stock market has emerged as one of the best-performing stock markets in the world. During the COVID-19 Pandemic, the Indian stock market displayed amazing resilience and seemed immune from global disturbances mostly due to Prime Minister Modi’s pro-investor policies and self-reliance campaign. With the BJP emerging strong in the Indian political arena, investors seem pretty confident about the Indian stock market. This explains the rally that followed poll results.

Read more: While Chinese stock market tumbles to its doom, Indian stock exchange is booming

Infrastructure and big-ticket investment projects get a shot in the arm

Prime Minister Modi is one leader who believes in making big investments in infrastructure and big-ticket projects. Highways, airports, railways, social infrastructure, dams, and bridges- every kind of infrastructure development has picked up in a big way under PM Modi.

And when there is a BJP government in the state, infrastructure development becomes even more prominent. The states of Uttar Pradesh and Manipur, for example, have witnessed an unprecedented thrust over the past five years in terms of highways, railways, new airports, and expressways.

Now, BJP’s victory in four crucial states will further enhance such big-ticket investment plans. Uttar Pradesh, the most populous state of India, offers ample scope for making new airports, expressways, and renewable energy projects. Uttarakhand and Manipur, being border states, are strategically important and Goa is a tourism-friendly state that opens it up for big-ticket investments.

Make in India gets a boost

With the latest Assembly poll results, four out of five states will get ‘double engine’ governments. This comes as a huge fillip for Prime Minister Modi’s flagship ‘Make in India’ initiative.

Presently, ‘Make in India’ is India’s mantra for establishing a strong manufacturing base and ramping up growth numbers. When there is a BJP government at the Centre as well as the state-level, then ‘Make in India’ does get a shot in the arm.

States with a BJP government or a pro-BJP government have been more business-friendly than other states. These states have shown a greater appetite for rolling out policy reforms, relaxing labour regulation, not going overboard with environmental regulation, introducing online tax filing reforms, ensuring single-window clearances, organising investor summits, and making land available for setting up new businesses.

This is how BJP-ruled states like Haryana and Uttar Pradesh have made it easier to do business and set up new manufacturing facilities.

Also, Prime Minister Narendra Modi keeps inspiring the Chief Ministers of BJP-ruled states to focus on good governance and focus on development for re-election. Prime Minister Modi’s ability to persuade BJP-ruled states goes a long way in improving the manufacturing scene and taking ‘Make in India’ forward.

The grand victory in four states is, of course, a huge vindication for the BJP. However, it also helps take India’s growth story forward.

Tags: BJPIndian EconomyIndian stock marketPM ModiYogi Adityanath
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