India’s economic boom won’t be derailed by its election shock
CNNNew Delhi CNN — Narendra Modi has declared victory in India’s election but he’ll need the support of smaller parties to govern, a shock result that could make it harder for him to pass major economic reforms. India boomed during Modi’s first two terms as prime minister, leapfrogging the United Kingdom to become the world’s fifth biggest economy and growing by 8.2% in the last fiscal year. “The lack of absolute majority doesn’t derail this broad economic agenda envisaged by the BJP,” said Aditya Suresh, head of India equity research at Macquarie Capital. In the long-term, he sees the government focusing on job creation, manufacturing and “improving ease of doing business.” India’s so-called “demographic dividend,” the potential economic growth arising from a large working-age population, represents a major opportunity. India is “still a strong story benefitting from democratic elections, a market-friendly government, attractive demographics, momentum out of China, and a unique digital stack, said Malcolm Dorson, head of emerging markets strategy at global investment management firm Global X.