Supporters of the ruling Bharatiya Janta Party (BJP) hold Indian Prime Minister Narendra Modi during an election campaign rally in Amritsar on May 30, 2024.
Narinder Nanu Afp | Getty Images
India began counting votes for the 2024 general election on Tuesday, with Narendra Modi expected to win a third consecutive term as prime minister according to opinion polls.
Polls released on Saturday show the Bharatiya Janata Party-led National Democratic Alliance is set to win a majority, with an NDTV poll putting the coalition at 365 seats in the lower house of parliament. Poll projections may not always be accurate.
The party or coalition that wins at least 272 seats out of 543 becomes the government.
Markets reacted euphorically to exit polls predicting a decisive victory for the BJP, with key stock benchmarks, the Nifty 50 and Sensex, gaining more than 3% and hitting record highs on Monday.
The Nifty 50 closed the day at 23,263.90 after hitting a record high of 23,338.70, while the Sensex closed at 76,468.78 after hitting 76,738.89 earlier on Friday.
It is the largest democratic exercise in the world with almost one billion registered voters. Voting, which began on April 19, is spread over seven phases and over six weeks.
Under Modi’s 10-year rule, India’s economy has grown strongly, with the latest GDP data showing the economy growing by 8.2% in the 2024 fiscal year that ends in March.
This is higher than the government’s initial estimate of 7.6%, and keeps the country the fastest growing large economy in the world.
“Modi will ride a winning horse and focus on India’s growth in a way that has never been seen before,” said Samir Kapadia, CEO of India Index and principal at Vogel Group.
One of the main priorities for the new government will boost the development of the country’s infrastructure, which has improved over the past few years, but lags behind its neighbor China.
“You can not compare the infrastructure of India to China yet. India will catch-up, but they are not there yet,” said Steve Lawrence, head of investment from Balfour Capital Group, adding that the two countries but can go head to head. -to-head in “intellectual horsepower.”
“You have two societies that are working hard, learning, getting smarter, and understanding different global markets,” Lawrence told CNBC’s “Street Signs Asia” Monday.
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