If you are looking for expert comment on the Indian election results Warwick Business School Assistant Professor Sourindra Banerjee researches the Indian business and economy.
Dr Sourindra Banerjee said: “The election result marks a clear shift towards pro-market macro-economic policies in India. This will result in a further decline of Nehruvian socialism, which was the dominant macro-economic policy of the ruling Congress party prior to 1991 and whose mellowed down version was followed after 1991, and in a deepening of capitalism in India.
“The deepening of capitalism should see a business friendly macro-environment with greater ease of doing businesses. This business friendly macro-environment will last a minimum of five years due to the decisive verdict received by BJP and will provide British businesses a stable macro-economic regime to further their India operations.
“Second, the advent of BJP under the leadership of Narendra Modi will also mean greater decisiveness by the Indian government on the economic front, greater administrative efficiency of the Indian government, less red-tape of the bureaucracy and less corruption in day to day business transactions. Such changes will make it easier for British businesses to compete in the Indian market.
“Thirdly, a BJP led government also means strengthening of economic ties with the ‘west’ in general and the UK in particular. The UK already has taken several steps to engage with the BJP and its pro-business leader Narendra Modi. Sir James Bevan, the British High Commissioner to India, met Mr Narendra Modi in August 2013 to show UK’s desire to engage with him and the BJP, while Mr Modi was invited to the House of Commons to speak on ‘The Future of Modern India’. Such steps of engagement will definitely further business relations between UK and India.”
