Economic fundamentals robust, says Nomura

Singapore: India’s economic fundamentals remain robust, investment bank Nomura said on Wednesday after the results of the country’s general elections paved the way for Prime Minister Narendra Modi’s third consecutive term in office. Modi is poised to form the government for a third consecutive term with the BJP-led National Democratic Alliance (NDA) getting a majority in the Lok Sabha, notwithstanding crushing losses in three Hindi heartland States after a bitterly fought election that was projected as a referendum on his popularity.

The Election Commission of India (ECI) has declared results for all 543 Lok Sabha constituencies, with the BJP winning 240 seats and the Congress 99. “Our assessment is that India’s economic fundamentals remain robust. Reforms in India have generally survived the test of politics and we expect the government to continue the pace of governance and administrative reforms, leaving states to work around the more intractable reforms around land and labour,” Nomura said.