BJP victory to boost economic sentiment:
Report
The thumping win of the BJP in the recently concluded general elections in the world’s biggest democracy has raised hopes that the return to power for the party at the centre may help spur investor sentiment, boost the country’s credit profile and springing a revival in Asia’s third biggest economy, which has grown below the 5 per cent mark for the past few quarters. The Indian economy has seen a surge in foreign investor inflows in recent months which pushed the country’s stock markets to sky-high levels and supported the rupee amid bets of a stable and strong government at the centre. And now that the BJP led by its charismatic leader Narendra Modi has scored a landslide victory in the polls, investor sentiment is likely to be even more bullish. Leading global rating agencies reckon that the degree of effectiveness of implementation of reforms and fiscal policies will greatly determine the country’s credit rating outlook in the next two to three months. "The challenge for the next government is to regain fiscal prudence in a sustainable way. Implementation of goods and services tax could help stabilise government revenues, while potentially improving the country's growth prospects, by promoting inter-state transactions," S&P said, the PTI reported
The thumping win of the BJP in the recently concluded general elections in the world’s biggest democracy has raised hopes that the return to power for the party at the centre may help spur investor sentiment, boost the country’s credit profile and springing a revival in Asia’s third biggest economy, which has grown below the 5 per cent mark for the past few quarters. The Indian economy has seen a surge in foreign investor inflows in recent months which pushed the country’s stock markets to sky-high levels and supported the rupee amid bets of a stable and strong government at the centre. And now that the BJP led by its charismatic leader Narendra Modi has scored a landslide victory in the polls, investor sentiment is likely to be even more bullish. Leading global rating agencies reckon that the degree of effectiveness of implementation of reforms and fiscal policies will greatly determine the country’s credit rating outlook in the next two to three months. "The challenge for the next government is to regain fiscal prudence in a sustainable way. Implementation of goods and services tax could help stabilise government revenues, while potentially improving the country's growth prospects, by promoting inter-state transactions," S&P said, the PTI reported
