Modi can become PM in the changed circumstances, will there be a challenge in economic reform, what do experts say

Economic Reforms for New Government : Prime Minister Narendra Modi (Narendra Modi) The return of the BJP to power in the changed political situation will make it challenging to fully implement important reforms. According to the economist, the results of the counting of votes of the Lok Sabha elections show that the current NDA has won 292 seats. But the BJP has fallen short of the figure of 272 needed to form the government on its own. He called it a “negative surprise”.

Responsibility for pushing forward reforms

Domestic brokerage firm MK Global said that there is a possibility that Narendra Modi will return as Prime Minister for a third term. However, he will have to face changed circumstances in governance. In such a situation, there is no possibility of change in the broad direction of economic policy. Analysts at Swiss brokerage firm UBS hoped that the new government would work to advance supply side reforms including manufacturing, simplifying regulatory processes, implementing labor reforms, skill development and creating employment opportunities.

Which reforms can face challenges

UBS said, however, we think it will be challenging for this government to implement tough reforms like land reforms, boosting spending on infrastructure, disinvestment, agriculture bill, uniform civil code and holding simultaneous elections across the country. RBL Bank’s Achala Jethmalani said that the BJP-led coalition’s victory by a narrow margin can accelerate the necessary reforms, which will support India’s growth story. MK said that the government will have to adjust policies according to its dependence on regional allies like Telugu Desam Party and Janata Dal (United).

got the basis of a strong economy

Experts say that the new government to be formed in India will inherit a strong economy. Strong tax revenue with record economic growth rate, rapid expansion of digital and financial infrastructure and strong manufacturing sector will give the new government the basis to carry forward the next generation of reforms and these things can make the country a developed country by 2047. However, the new government will also have to deal with problems like unemployment. These issues have played a major role during elections in states like Uttar Pradesh. Along with this, there will also be a challenge to keep inflation under control.

According to experts, no party including BJP has got a clear majority. In such a situation, reforms like large-scale privatization and changes in labor laws may be put on hold for the time being. The new government will have the responsibility of taking forward the 8.2 percent GDP growth recorded in 2023-24 and will have to carry forward the reforms to make India a $5000 billion economy in the next few years and a developed nation by 2047.

Out of the image of a ‘weak’ economy

DK Srivastava, Chief Policy Advisor, EY India, said that India will benefit in the long term by focusing on the self-reliant strategy. This will also create scope for increasing the export of both services and goods. The new government will get a solid foundation for the economy, which will be ready to move forward with the aim of fulfilling India’s goal of becoming a developed country in the next 25 years. In the 10-year tenure of the Modi government, India has become the fifth largest economy from the 11th globally. It has come out of the image of a ‘weak’ economy that was created before 2014.