Govt with clear mandate will reduce uncertainty: Fitch

Tags: News
With the BJP-led NDA scoring a landslide victory in elections, rating agency Fitch today said a government with a clear mandate will reduce uncertainty and take decisive policy actions to address economic challenges.

"A government with a clear mandate reduces uncertainty and increases the chances of decisive policy action to address the economic challenges India faces. We will see whether the new government takes those chances," Fitch said in a note.

The rating agency further said that the new government should focus on bringing growth back to higher sustainable levels, which would require a strong pick-up in investments.

BJP-led NDA is expected to get over 330 seats in the recently-concluded general elections for the 16th Lok Sabha. The elections were held for 543 Lok Sabha seats.

Outlining the steps to strengthen investment climate, Fitch said a clear strategy for fiscal consolidation, enhancing fiscal credibility and creation of a low-inflation environment would be essential to restore confidence.

Further, a new structural reform push that could include reforms related to governance, infrastructure bottlenecks and reduction of red tape would also be key issues which needs to be looked upon, it added.

"Early results indicate Indian voters have given a strong mandate to the BJP to lead the next government. It will take some time to get clarity on the new government's broad economic strategy," it said, adding the agency will keep a close watch on the next government's first Budget, expected in July.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • The survey paints an optimistic future, but sees little scope for a bang

    The Economic Survey, which comes out a day before the Union budget, is widely regarded as its forerunner, an indicator of things to come 24 hours late

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Urs Schoettli

The hidden attractions of Japan

We live in the Asian century. During the past two ...

Zehra Naqvi

Star power

Being a part of the generation that gorged on Shah ...

Bubbles Sabharwal

The waking moment decides the day

There was a little girl/ Who had a little curl/ ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture