If Prime Minister Narendra Modi returns to power in the changed political situation when a new government is formed after the results of the Lok Sabha elections 2024, then it will be challenging to implement important reforms. Economists expressed this opinion after the election results. According to Bhasha’s news, according to economists, the results of the counting of votes in the Lok Sabha elections revealed that the current National Democratic Alliance (NDA) has come to a majority, but the BJP fell short of the figure of 272 required to form the government on its own.
There is no possibility of change in the broad direction of economic policy
According to the news, economists called it a negative surprise. Domestic brokerage firm Emkay said in a commentary that there is a possibility that Narendra Modi will return as Prime Minister for a third term. However, he will have to face changed circumstances in governance. The commentary further said that in such a situation, there is no possibility of a change in the broad direction of economic policy.
Analysts at Swiss brokerage firm UBS expect the new government to push forward supply-side reforms, including manufacturing, simplifying regulatory processes, implementing labour reforms, skill development and creating employment opportunities.
Implementing several reforms
The brokerage firm said, however, we think it will be challenging for this government to implement tough reforms like land reforms, boosting infrastructure spending, disinvestment, agriculture bill, uniform civil code and holding simultaneous elections across the country. RBL Bank’s Achala Jethmalani said that the BJP-led coalition’s narrow victory can accelerate the necessary reforms, which will support India’s growth story. Emkay said that the government’s dependence on regional allies like Telugu Desam Party and Janata Dal (United) will require adjusting policies accordingly.
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