Modi's election victory confirms business appeal of Indian market

India's elections and the reaction of international markets

With a massive electoral process unprecedented in history, the world's largest democracy has spoken, choosing Prime Minister Narendra Modi to lead it once again. Although the renewal of the mandate was widely predicted by international analysts, the result was still surprising: with 67% of the vote and more than 300 seats in the Lok Sabha (the lower house of the Indian Parliament, where 272 are needed for an absolute majority), Indian voters placed greater trust in the outgoing Prime Minister and his party, the Bharatiya Janata Party (BJP), than they did 5 years ago.

The reason for such a clear victory (the main opposition party, the Indian National Congress, stopped at a mere 55 seats) is to be found in the Modi government's ability to fuel a extraordinary economic growth with a mix of public investment and reforms aimed at making the country more business friendlythanks to strong leadership, during his first term Modi managed to implement major reforms (such as demonetization and a single VAT across the federal territory), previously considered at least unthinkable for such a bureaucratic behemoth as India. The results were not long in coming: since 2014, the year of the election of the first Modi government, The growth of the Indian economy has not stopped accelerating (the average growth rate it hovered around +7%) and India today is, among the major world economies, the one experiencing the most rapid expansion. The future also looks particularly positiveif in 2018 the Subcontinent occupied the seventh place in the world ranking in relation to GDP (right ahead of Italy), by 2030 it is expected to reach the third position, with growth rates well above 7 percentage points.

The re-election of Narendra Modi was welcomed with particular favor by domestic and international investors.not by chance, the day after the vote, the Senex Index of Mumbai stock exchange hit its own all-time high. Indeed, economic operators see the stability of New Delhi a excellent growth driver for the country, precisely because it is able to guarantee the necessary continuity in the path of reforms and of many programs still being implemented: Make in India, a manifesto of Modi's signature economic development model, and infrastructure investments in the Smart Cities and in the Mega Food Park represent the most shining examples.

Opportunity for Italy

India is therefore heading towards a crucial season of massive investment, both public and private, which will consequently result in. huge business opportunities For foreign companies. What Italy can do In the face of this scenario?

Our companies are able to offer products, services, know-how, and technology that the local market is desperately seeking: When considering the similarities between the industrial fabrics of the two countries, the Great appeal exerted by the made in Italy and in light of the strong appreciation shown by Indian entrepreneurs for the flexibility and adaptability of our SMEs, it follows that, by virtue of all these reasons, We cannot afford to consider India a secondary market. The spaces to be conquered loom within various sectorsfrom food processing to interior design, from infrastructure to renewable energy, from mechanics to retail, and even e-commerce.

Companies that want to approach India, also by virtue of the profound changes the country is undergoing, must be aware of how it is a market definitely of enormous potential but also complex and not easy to understand, for which a strategic approach And a deep understanding of internal business dynamics.

Octagona supports your business in India!

If you are interested in the Indian market, contact us at the address: [email protected] or at the phone number 059.9770184: Octagona, thanks to 17 years of market experience and the presence of its direct offices in India (New Delhi, Pune, and Bangalore) it can build the most suitable internationalization project for your company.