With a year to go for general elections, one of India’s top financial leaders, Deepak Parekh, Chairman of HDFC, said that he is confident that Prime Minister Narendra Modi's government will come back to power with a greater majority.
“I have no doubt that the current regime, under Modi's leadership will come back in the next general elections and probably with a higher majority,” Parekh told Moneycontrol in an exclusive interaction.
The Modi government goes to polls in 2024, after completing two terms in power and governing India for the last decade. Modi, who had built a reputation of being “pro-business” as Chief Minister of Gujarat and was the mastermind behind Vibrant Gujarat, has been a proponent of ‘ease of doing business’.
In the last decade, the government has announced several policy moves to unleash the animal spirits in the private sector – from reducing corporate tax rates to 25 percent for companies with revenue up to Rs 250 crore to a slew of programmes targeted towards encouraging investments – including Make in India; opening up foreign direct investment (FDI) across several key sectors; cutting down on regulatory red-tape.
India also attracted record foreign direct investment –in financial year (FY) 2021-22, it attracted the highest annual FDI inflows of $84,835 million (over Rs 6 lakh crore). Policy continuity has been one of India’s biggest positives in the last decade.
“Modi coming back to power means continuity of policies, and investors accord a high premium to political stability," said Parekh.
The semi-finals for the Lok Sabha elections will be held in 2023 with nine state elections – which could determine the verdict of the Lok Sabha elections in May 2024. States going to polls in 2023 are – Meghalaya, Nagaland, Tripura, Karnataka, Chhattisgarh, Madhya Pradesh, Rajasthan and Telangana.
In 2019, the Bharatiya Janata Party-led National Democratic Alliance won 350 seats in the Lok Sabha.