Mandate for new government not as stable as markets wanted

We will see less aggressive ED, CBI and other central agencies

“One Nation One Election” and UCC may not be a reality in next 5 years

Elections are finally over and we will have a new government. Mandate for the new government is not as stable as the markets wanted and not as powerful as the RSS support base wanted. But there is a relief that we had an election with a pre-poll alliance forming the next government. In fact, this election has made all our political parties happy for some reason or the other (Except for BRS, YSRCP and BJD).

Here are few quick thoughts on what to expect from the new government:

1. Expect continued improvement in policies encouraging manufacturing, tourism, MSME and Defence. These priority sectors are better equipped to create jobs and the government will increase their push around the same.
2. There will be continuity of foreign policy, economic reforms with more push towards reforms in higher education and healthcare.
3. While we hope, it’s highly unlikely that the new government will put in additional effort around FDI/FII. There is a belief that there is enough capital and much is not needed to create excitement in investors. But unfortunately, government will continue to ignore the positive benefits of making investment easier instead of misplaced cautiousness  around round tripping/black money.
4. Luckily people have rejected ideas of freebies to large extent but DBT’s and subsidies continue with the message of social engineering.
5. Long term structural reforms around judiciary, farm laws, “One Nation One Election” and even UCC may not be a reality in the next 5 years. Expect much fewer reforms over the next 5 years.
6. It is unlikely that we will see major changes around Kashi, Mathura+. In fact, alleged “Hindu Rashtra ” or single party system will be far from reality.
7. We will definitely see less aggressive ED, CBI and more opposition ruled states.
8. I strongly believe there was never a thought around relooking into reservation / tweaking it. But unfortunately even the reforms that would have strengthened reservation may be dropped. Caste censes may happen more from the perspective of rationalizing existing reservation.
9. There will be lesser rhetoric/ loose talks by the leaders of the ruling party and hopefully lesser venom fired from the opposition too!!

Next 5 years are critical for India in a AI driven, sustainability focused, energy starved globe. We should be happy that there is more stability here than many places and work towards building better and stronger India.

— Suresh Narasimha, CoCreator, CoCreateVentures