Exit polls signal that Prime Minister Modi’s BJP and its coalition partners in the National Democratic Alliance have won India’s election. Admittedly, exit polls have been wrong in the past, not least in underestimating the strength of the BJP’s victory in 2014. We won’t know the official result until late on Thursday. But taken at face value, the polls indicate that the next government will be a stable coalition. This would set the stage for continued gradual reforms that would sustain rapid economic growth over the next few years. Markets have rallied on the polls: Indian equities surged by 4% to an all-time high yesterday. Further strong gains may now only come if the BJP is able to secure an outright majority.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services