BJP-Led NDA's Victory in State Elections to Accelerate Economic Reforms
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Mumbai, Nov 28 (NationPress) The latest victories in state assembly elections have significantly strengthened the BJP-led NDA, which is poised to bring much-needed stability and determination to advance economic reforms, as per a report released on Thursday.
The outcomes of recent state and bye-elections in Maharashtra, Haryana, Uttar Pradesh, and Bihar have solidified the ruling NDA's position, according to insights from PL Capital - Prabhudas Lilladher.
This development is expected to ensure policy continuity for major reforms across the nation.
With the BJP-led MahaYuti’s overwhelming success in Maharashtra, the state's aspiration to achieve a $1 trillion economy has gained significant momentum, aligning with Prime Minister Narendra Modi’s vision.
Earlier this year in August, Maharashtra marked a milestone by becoming the first state to exceed the half a trillion-dollar economy threshold, highlighting its swift economic advancement and ambitious pursuit of a trillion-dollar economy.
The Finance Ministry's monthly economic review suggests that India's food inflation is projected to decline, while the economic growth outlook remains 'cautiously optimistic' for the upcoming months, driven by favorable monsoon conditions, increased minimum support prices, and sufficient input supply in the agricultural sector.
The report indicates that Indian markets are on a positive trajectory, although challenges have not yet fully subsided.
Demand conditions are varied, with a steady increase in rural demand due to a low base and normal monsoon patterns. Much anticipation now hinges on a surge in demand during the festival and wedding season.
The report further notes that the anticipated Donald Trump 2.0 administration is likely to bring about a decrease in global conflicts, reduced geopolitical uncertainties, and stable crude oil prices, which would be favorable for the Indian economy.
Moreover, a revival in government capital expenditure is expected as Q2 capital expenditure has turned positive, and the first half's capital expenditure is only 37 percent of FY25's budget estimate.
Additionally, sectors such as banks, capital goods, hospitals, logistics, and pharma have reported over 19 percent EBIDTA growth year-on-year, while durables, IT services, and chemicals have experienced single-digit EBIDTA growth in Q2 FY25.
