Hopes for a change of government in India’s upcoming elections have helped the subcontinent’s currency and shares recover from sharp declines earlier this year, but the optimism may be premature.
After a strong performance in state elections completed earlier this month, many expect the opposition Hindu nationalist Bharatiya Janata Party (BJP), led by Narendra Modi, could oust the current ruling Congress party in national elections set to be held by May. The Congress party’s image has been tainted by a poor economic performance and the slow pace of legislative changes.
Modi, the prime ministerial candidate of the BJP who is currently serving as the chief minister of Gujarat, has been applauded for his investor-friendly policies that have led the state to double-digit economic growth.
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