ronniechua/iStock via Getty Images In my previous article advocating India over China I suggested that an election disappointment for PM Narendra Modi was one of the risks. Although it seemed like long odds at the time, an election disappointment was exactly what PM Modi and his Bharatiya Janata Party (BJP) got. Despite exit polling which showed the BJP winning more than 300 seats in the Lok Sabha (lower house of parliament), the laborious final count gave the BJP just 240 seats, 63 fewer than they had received in 2019.
Modi himself had gone out on a limb and predicted 400 or more. Instead of enjoying the expected outright majority, it was necessary for PM Modi and the BJP to put together a coalition with smaller parties which generally agreed with the BJP but did not agree on all issues. What followed was an effort by political leaders, journalists, and investors to come to terms with what had happened and what impact it was likely to have on the future of Indian politics, India's economy, and its markets, as well as India's rising place in the world.
Most observers had been caught flat-footed, myself among them. The election initially raised many questions but gave no definitive answer. Deconstructing The Response Of The Indian Market The Indian market could not initially figure out what to make of the BJP "defeat.
" Leading up to the day when full results were announced, Indian markets had been rallying furiously. On the last day before actual results began to flood out the.