As you know, India Lok Sabha Elections 2024 has already started! The whole nation has glued its eyes to the surveys indicating a favorable trajectory of business growth in India. So, what can we expect in business from the ongoing Lok Sabha Elections?
Go through the article and you’ll find out!
Synopsis of India Lok Sabha Elections 2024
Before jumping into the business expectations, let’s have a brief overview of the Lok Sabha Elections 2024.
The 2024 Indian general election is the talk of the town, lasting a whopping 44 days, making it the longest election in history! Split into seven phases, it’s like a marathon of voting, with the big reveal of results slated for June 4, 2024. People are casting their votes to elect 543 members of the Lok Sabha, which makes the Indian parliamentary system.
Narendra Modi, the current Prime Minister, is eyeing a third term in office, hoping to continue his streak. His party, the BJP, had a landslide victory last time, grabbing 303 seats, while the main rival, the INC, managed just 52 seats.
Almost a billion folks, out of India’s massive 1.4 billion population, are eligible to vote. If you’re an Indian citizen, 18 or older, can give your vote.
Apart from these national elections, state assembly elections are happening in Andhra Pradesh, Arunachal Pradesh, Odisha, and Sikkim, plus some by-elections in 12 state legislative assemblies. With all this political buzz, it’s no wonder India is gearing up for a historic shake-up come June 4!
What to Expect in Business?
In terms of Business, Indians have sky-high expectations. Reason? They’ve seen numerous progress in business and entrepreneurship since the last decade. So, without any delay, let’s dive into those expectations one by one-
1. Growth in the Fintech & Payments Ecosystem
As the way we handle money keeps changing, fintech and payments are booming more than ever. With more people wanting to buy and sell things online, banks and financial markets are under pressure to keep up while also making sure people’s money is safe. This growth means lots of new ideas and services, like apps and websites, are popping up to make managing money easier.
But with all this excitement and innovation, there’s also a need for stricter rules to make sure everything runs smoothly and people’s money stays safe. And that too especially after the Lok Sabha Elections.
So, whether it’s sending money online, investing in new ways, or using fancy financial apps, the fintech and payments world is making it easier and safer to manage your money!
2. Boost FDI (Foreign Direct Investment) and PLI Schemes
In the ongoing Lok Sabha elections, with the BJP hoping to secure a significant win, there’s an expectation that they will continue their approach to managing finances carefully. This means they’ll keep an eye on how money is spent and try to keep the country’s finances in good shape.
Infrastructure, like roads, bridges, and other essential facilities, will likely be a top priority. The government wants to improve these things to make life better for everyone.
They’ll also be pushing to make everything more digital. This means things like online services and using technology to make things easier and faster for people.
Another thing they’ll be looking at is selling off parts of government-owned businesses. This is called disinvestment. By doing this, they can raise money and make those businesses more efficient.
One big thing they’ll be hoping for is to attract more money from other countries to invest in India. This is called foreign direct investment (FDI). When foreign companies invest in India, it helps create jobs and grow the economy.
They’ll also be offering incentives to companies that manufacture goods in India. These incentives, called Production Linked Incentive (PLI) schemes, encourage companies to make more things here, which again, helps the economy and creates jobs.
Lastly, there will be a focus on improving life in rural areas. This means making changes to help farmers and people who live outside of cities.
These changes are called structural reforms, and they’re meant to make life better for everyone, no matter where they live!
3. Growth in Manufacturing Sector
Post the Lok Sabha elections in 2024, there’s a positive outlook for the manufacturing sector, which is all about making stuff, like cars, phones, and clothes. With more and more people in India wanting to buy things, the demand for goods is going up. This means there’s a good chance that factories making these things will be busier than ever.
One big reason for this expected growth is something called the Production Linked Incentive (PLI) scheme. These are like rewards for companies that make stuff in India. By offering these incentives, the government hopes to encourage more companies to set up factories here and create more jobs. So, with all this support in place, it’s likely that we’ll see even more “Made in India” products on the shelves and more people working in factories across the country.
4. Transformation of the Service Sector
So, once the Lok Sabha elections in 2024 are over, we can expect some big changes in the service sector, which is all about providing services rather than making physical products. One major shift will come from embracing new technologies to make things like deliveries faster and more efficient. This means that when you order something online or need a service, like a plumber or a ride, it could arrive at your doorstep even quicker than before, thanks to these advancements.
Not only that, but with other sectors like finance and manufacturing also expected to grow rapidly, the service sector will likely see a boost too. This growth will create opportunities for various supporting industries, like-
- Technology services
- Research & Development
- Outsourcing services
- Professional services such as consulting.
So, while the way we get things done may change, it’s all aimed at making life easier and more convenient for everyone.
5. Overall boost in entrepreneurship
On the completion of the Lok Sabha elections in 2024, there’s a lot of buzz about a potential surge in entrepreneurship in India. Basically, more people might be inspired to start their own businesses.
And why not?
The government seems keen to support these budding entrepreneurs by offering schemes and benefits to help them set up and grow their businesses. This means they’ll get some extra help to ensure their ventures are stable and successful.
Not only does this benefit the entrepreneurs themselves, but it also means more jobs for others. When new businesses pop up, they often need people to work for them, which means more employment opportunities.
However, it’s not all smooth sailing. With this boost in entrepreneurship, there’s also a need for better rules and regulations to keep things in check. The government wants to make sure that startups and small businesses operate smoothly while also ensuring that everything is fair and above board. So, while the road to entrepreneurship might have some bumps along the way, overall, it looks like a promising journey ahead for those looking to start their own ventures in India.
6. Impact on Financial Markets
The Lok Sabha elections in 2024 are expected to have an impact on financial markets, which are basically places where you can buy and sell things like stocks and bonds. Now, historically, elections tend to be good news for financial markets.
In fact, during the last four general elections in India, the markets have seen pretty impressive returns, often reaching double digits. However, this time around, experts think that a lot of this good news might already be factored into the market. This means that the market might have already taken into account all the positive vibes surrounding the election outcome.
But, there could still be surprises waiting around the corner. For instance, if the election results turn out to be unexpected, like in 2004 when the ruling government got overturned, we might see the markets take a bit of a dip. Similarly, if the ruling party doesn’t win as many seats as expected, it could also put a damper on things.
On the flip side, if the ruling party wins by a landslide, the markets are likely to celebrate.
Now, all this talk about the impact of elections on the markets might make you wonder- Should I change my investment strategy based on who wins the election?
Well, according to investment experts, probably not. Experts say it’s important to focus on long-term goals rather than getting caught up in short-term fluctuations caused by things like elections.
In the long-term vision, what really matters is economic growth, how well companies are doing, and how confident investors feel about the future. So, while it’s tempting to react to every twist and turn in the market, sticking to a long-term investment plan is often the best way to go!
7. Profit Booking in Stock Market Post Elections
After the Lok Sabha elections in 2024, there’s a lot of talk about what might happen in the stock market. You see, there’s this thing called profit booking that experts think might happen.
But what exactly is profit booking? Well, it’s when investors sell off some of their stocks to lock in the profits they’ve made. In other words, they liquidate their shares for cash.
Now, why would investors want to do this after the elections? Well, it all comes down to expectations. You see, leading up to the elections, there’s a lot of excitement and anticipation in the air. Everyone’s watching closely to see who’s going to win and what that might mean for the country.
But once the results are out and things start to settle down, some investors might decide to cash out their winnings and take a breather. It’s kind of like hitting the pause button after a big event.
According to Bernstein, a company that keeps an eye on these things, there’s a chance that the ruling party might not win as many seats as people are expecting. And if that happens, it could trigger a bit of a sell-off in the stock market as investors readjust their expectations. But, it’s not all doom and gloom. Bernstein also thinks that in the long run, things will be just fine. As long as the overall economic picture stays healthy, any dips in the market are likely to be modest and temporary.
So, while there might be a bit of turbulence in the stock market after the elections, it’s all part of the game.
In the end, what matters most is staying focused on the bigger picture and not getting too caught up in the ups and downs of the market!
8. Clean Energy Transitions
There’s a lot of talk about some big changes on the horizon after the ongoing India Lok Sabha elections. One of the things that’s got people excited is the idea of shifting towards cleaner energy sources. This means using things like solar and wind power instead of relying on fossil fuels, which can be harmful to the environment. Not only is this better for the planet, but it also opens up new opportunities for businesses in the clean energy sector.
Note: We have already explained “6 Biggest Green Hydrogen Stocks in India.” You can go through the article for detailed information.
9. Increase in Infrastructure Spending
Another big change we might see is an increase in spending on infrastructure. This includes things like building new roads, bridges, and digital infrastructure like internet connections. By investing in these areas, the government hopes to boost economic growth and create more jobs for people. Plus, it makes life easier for everyone by improving transportation and communication networks.
Overall, these changes are part of a broader strategy to kickstart the economy and improve the lives of people across the country. Whether it’s investing in clean energy or building better infrastructure, the goal is to create a brighter future for everyone.
Final Words
As we wait for the results of the 2024 Lok Sabha elections, big changes could be coming for businesses. Whether it’s more people starting their own ventures or shifts in the stock market, it’s a time of both challenges and opportunities. Hence, businesses should closely monitor election developments, adapt to potential policy shifts, and stay informed about regulatory changes during these elections.
We would like to thank you for sticking with us and reading this article to the end 🙂 Please don’t hesitate to share your thoughts in the comment section below!
These election seem to have a greater impact on the business industry!