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Oct 8, 1999
BJP led coalition in saddle
The Indian elections are drawing to a close, for the second time in as many years. Although, the stock markets have greeted the poll results with enthusiasm, few people, contrararians as they may be, have been pointing out the fractured nature of the National Democratic Alliance (NDA), the BJP led coalition.
The NDA consists of some 24 odd parties, with a number of them supporting conflicting ideologies. Among them, the Telugu Desam Party (TDP), led by the charismatic Chandrababu Naidu, is still considering whether or not to join the government. This could lead to some instability in the future. Moreover, with some alliance partners already mumbling about the effect of the price hikes, the government is likely to take off on a shaky start.
Nonetheless, the NDA has drawn up ambitious plans for the first 100 days. It plans to push through legislation for:
- Introduction of derivatives trading
- Curbing money laundering
- Private sector participation in the insurance sector
- Amending the patents act
- Greater freedom and scope for foreign exchange management
The Indian electorate on the other hand is looking for political stability more than anything else. Economic reforms are not any more a prerogative but a compulsion with governments instrumental only in manipulating the speed of the reforms.
Expectedly, the stock markets have greeted the poll results with exuberance. However, the fact that there is a possibility of unstability in the new coalition is yet to be factored in. This could give the markets a few jittery moments.
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