India Begins Its 6-Week Election Process: Here's How It Could Impact Stocks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 19 2024
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Source: Business Insider
- Indian Election Process:
- Millions of Indian citizens have started the voting process for a six-week-long election, serving as a referendum against Prime Minister Narendra Modi.
- The election is significant as Modi seeks his third term and leads the right-wing Bharatiya Janata Party with a Hindu nationalist ideology.
- Economic Initiatives and Poverty Rate:
- Modi has supported economic initiatives attracting foreign investment into India's growing sectors.
- Under his leadership, India's poverty rate has decreased by nearly 10% in the last decade, now around 80% from 90%.
- Economic Growth Comparison:
- While poverty reduction has been notable, India's economic growth has slowed under Modi compared to the previous administration of Manmohan Singh.
- Financial indicators like iShares MSCI Inda ETF and Franklin FTSE India ETF have shown positive growth trends.
- Competition in Elections:
- Modi faces competition from a coalition of more than 20 parties called the INDIA coalition, but their leader if successful is undecided.
- Polls predict Modi's victory in the upcoming elections according to AP News.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
