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Why we remain bullish on India’s economy post-elections


India's election is one of the most closely watched events for what is going to be a turbulent year on the political front. While the Indian election result sees Narendra Modi still in charge, his BJP party is now being forced to form a government with the National Democratic Alliance.

Markets in India responded positively to news that the BJP was making progress with the formation of a new government. For foreign investors who favour maintaining or increasing their allocation to India, the key question is whether the economic policies which have made India into an Asian financial powerhouse will remain in place?

Modi's political credentials are partly founded on his ability to turn economies around, as he demonstrated when he was chief minister of Gujarat. Some analysts are worried now that the election represents a potential backlash against him from those parts of Indian society that have not seen the fruits of his economic policy.

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This article does not constitute investment advice. Make sure you do your own research or consult a professional advisor.

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