The election outcome, which comes in the backdrop of demonetisation, signals that people want the Centre to take bolder steps to stem black money, root out corruption and bring back illegal money from abroad.
The Indian economy clocked a faster-than-expected growth of 7 per cent in fiscal third quarter, notwithstanding the demonetisation of high-value banknotes in November and the resultant impact on output as well as the consumption. The Global ratings agency Fitch expects Indian economy to grow by 7.1 per cent in the current fiscal before stepping up to 7.7 per cent in the next two financial years.
Going forward, the Narendra Modi led government is expected to remain focused on measures that will help to improve the ranking in terms of ease of doing business,significantly and persistently in the period ahead. Implementation of the GST from July will simplify indirect tax structure, reduce geographical fragmentation and widen the tax base, which will prove to be transformational for the Indian economy in the medium term.
With Narendra Modi now firmly entrenched in power until at least 2019, and perhaps further ahead, the focus will be on whether Modi can deliver on his promises of rapid development.