Date: 06th June 2024 | Publication: Ausbiz
Mugunthan Siva from India Avenue Investment Management reflects on the recent blow to the Bharatiya Janata Party (BJP) in the Indian elections. He views the unexpected election results and the subsequent decline in Indian equities as indicative of discontent among the Indian population. It seems the traditional majority, according to Mugunthan, is no longer satisfied with the ruling party’s focus on top-tier GDP locations and wealth accumulation at the expense of the needs of those in rural India.
In assessing the impact of the election results on the economy, Mugunthan dispels fears that a potential coalition government would hinder India’s impressive growth trajectory. Instead, he attributes continuous growth over the last 44 years to successful coalition governments. Refuting any notions of a wholesale rejection of Hindu nationalism, he claims the focus should be shifted towards mitigating unemployment and inflation, especially in rural areas. Moreover, he supports infrastructure investments which he deems instrumental in lifting rural areas out of poverty.
