India Election Update – May 2014

The BJP-led National Democratic Alliance won a landslide election victory in the recently concluded elections, with the BJP winning enough seats to govern in its own right. The result was welcomed strongly by financial markets, reflecting gains in both equities as well as the Indian Rupee.

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  • The BJP-led National Democratic Alliance won a landslide election victory in the recently concluded elections, with the BJP winning enough seats to govern in its own right.
  • Its leader, Narendra Modi, led a highly efficient and energised campaign, and tapped into voter anxiety over weak economic conditions during recent quarters.
  • The result was welcomed strongly by financial markets, reflecting gains in both equities as well as the Indian Rupee. Share market volatility eased considerably following the results.
  • The verdict does offer the incoming Modi administration a strong mandate to pursue its development agenda, unshackled by Coalition political constraints.
  • If the incoming administration is able to fast-track stalled projects and improve the ease of doing business, then India’s growth prospects should improve over the coming quarters.

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India Election Update – May 2014 (PDF,135KB)