The electoral process by itself was daunting. It occurred at the peak of summer where temperature touched 45.C. India has the highest recorded polling booth at around 15,000 ft in the Himalayas. It also has stations inside a wildlife sanctuary in Kerala and another in a shipping container in Gujarat. In this election, for the first time, voters over 85 years age and also those with 40 per cent disability have cast their votes from home.
The results on 04 June will be detrimental. Either the Modi led alliance will create a hat-trick victory or the opposition led by Congress would be able to break the winning spree. As the youngest nation participates in the largest democracy, this election has upped global anticipation too. Modi’s victory will make him next to Jawaharlal Nehru to have won three terms consecutively and the predictions are in favour of him.
Pep up private investment
The ten-year rule did see India pulling several million out of poverty and emerging onto the global stage, showcasing its newfound voice and influence. But the coming years will be critical to realise the vision of moving towards a five trillion-dollar economy. A few major priorities will help fast track towards this goal. It begins with spurring private investment. On its part, the government in two consecutive budgets has set apart historic amounts for capital expenditure. But the enthusiasm is not reflected by private players who are vary to expand their facilities in India. The same is reflected in FDI too. It has been falling since 2021-22 from USD 59 billion to USD 46 billion in 2022-23. In the first 9 months of the current financial year, FDI has seen a 13 per cent fall to USD 32 billion. This may be due to global uncertainties but this lackluster growth can put India in a back runner. Such an event at a time when India is trying to position itself as a formidable and trustworthy alternative to China, can hinder in capacity expansion and attracting global players.
Taxes and consumption
Household consumption has been falling drastically both in rural and urban areas and at the same time savings has also decreased. High inflation and poor farm output are major contributors. As consumption decreases, so will manufacturing take a halt. This could be a major reason for investments not picking up. Surplus capacity may lie idle in factories. Adding to all this, employment is also a serious concern. Providing opportunities to match the aspirations of the youth is crucial. As more and more youth get educated, jobs that match their skill set must be created. This cannot be created by the government alone. Private players must step in largely. But it again sets about a never ending spiral where only when consumption increases will investments flow which inturn will create job opportunities.
The government will take its seat in a challenging global scenario which too will have a wide impact on our economy. These are all important pegs and must be looked into on priority to fast track our growth agenda.
