Experts optimistic about ambitious economic agenda of Modi 3.0

Even as coalition dharma plays out in the making of the NDA coalition government with the necessary juxtaposition of stance of its partners and amidst speculation on which way the government agenda will swing, there is broad consensus among economists, experts and stakeholders

The Sunday Guardian spoke to, that in the context of the Indian economy holding out strong prospects of growth and resilience, this augurs well for an economic agenda that supports sustained momentum in manufacturing and services activity, revival in private consumption, keeping investment activity on track, thrust on infrastructure spending, optimism in business sentiments.

While global rating heads like Jeremy Zook, Director and Primary Sovereign Analyst for India, Fitch Ratings, led a large set of opinion to observe that though "BJP fell short of a single-party majority in the 543-seat lower house of Parliament for the first time since its latest period in government began in 2014", there is an overall expectation that the government will secure enough support from allied parties in the NDA to stay on the trajectory of growth. "We do not think that the government's losses at the ballot box will lead to substantial policy adjustment," says Zook.

"India's medium term growth performance to remain around trend estimate of 6.2% through FY28, despite the government's slimmer majority," says Zook.

That optimism, according to Nagesh Kumar, economist and Director, Institute for Studies in Industrial Development (ISID), is being driven by the sense that the economy is in good shape with robust macro fundamentals. "India is doing exceptionally well in the global perspective if you see around the world with 8.2% growth in FY24 and projections of around 7%, if not more, for the current year, USD 650 bn of foreign exchange and sharp rise of the Sensex from levels of 60,000 to 75,000 points in the last few months," Kumar told The Sunday Guardian. He agrees there has been some volatility in the stock market, which was expected, but what is important, adds Kumar is that this ascent signals market confidence that the Indian economy is expected to do well amidst a challenging global environment," points out Kumar.