New Delhi, March 10 (FN Agency) As BJP swept Uttar Pradesh again and is set to form governments in other three states, economists and policy-watchers have said that investors now have a clear vision for the next 6-7 years in terms of economic policy and reforms would continue unabated. They said that macro stability would remain the focus area of government as any pressure to take populist measure has now substantially eased. They expect the government to aggressively push for asset monetisation and privatisation to spur economic growth.
Nilesh Shah, Founder and CEO at Envision Capital, said that with state elections out of way and the ruling party winning 4 out of 5 states, disinvestment and privatisation would pick up pace. He noted that BJP government in its previous term in Uttar Pradesh focussed more on law and order and now it is likely to accord top priority to economic growth and development. “UP is very large state. As a state its economy has been growing at a rate lower than the national average. With now the ruling party getting second term, in the first term first priority was law and order, now the top priority will be economic development and growth. If UP starts growing at a high rate that is likely to not only support but also push India’s overall economic growth rate,” Shah told UNI. He also said that the mandate in favour of BJP would further add to the stature of Prime Minister Narendra Modi on global forums. As per the Election Commission (EC), BJP had either won or was leading on as many as 249 out of 403 seats in UP, far ahead of the majority mark. In three other states of Uttarakhand, Goa and Manipur, the party is headed towards victory. Arvind Kejriwal-led AAP is headed for a landslide victory in Punjab. Indian National Congress (INC), the grand old party, has performed poorly in all five state Assembly elections. Industry analysts see the election outcome as positive for overall growth and development, arguing that it will provide policy certainty and predictability.