India's Economic Policy Trajectory Likely to Stay Steady Despite Elections Result

New Delhi, May 28 (KNN) India's economic policies are expected to remain largely consistent regardless of whether Prime Minister Narendra Modi wins a third term in the upcoming elections, according to former central bank Governor Raghuram Rajan.

"There is a lot of continuity built into Indian policy," Rajan said in an interview with Bloomberg TV. "Whatever government comes in will take a lot of the good stuff that has been done and continue it."

The new government will announce a budget soon after taking office, likely focusing on maintaining positive economic developments while making necessary adjustments, Rajan noted.

India's six-week national elections conclude on June 1, with results due on June 4.

Modi's Bharatiya Janata Party is widely expected to return to power, though uncertainty remains about whether it will expand its majority as Modi has predicted.

Financial markets are bracing for potential volatility if the BJP loses support, amid concerns over a possible shift away from economic reforms.

Rajan praised the Modi government's infrastructure spending as necessary but emphasised the need to ensure quality and inclusive benefits moving forward.

Estimates suggest India will invest USD 534 billion in new infrastructure from 2024 to 2026, helping boost economic growth to 9 per cent by 2030.

(KNN Bureau)