As the dust settles on India’s marathon election, the world watches with keen interest to discern the implications for the nation’s economy. Prime Minister Narendra Modi’s Bharatiya Janata Party (BJP) secured a significant victory, but what does this mean for India’s economic trajectory?

The 2024 Lok Sabha election, spanning six weeks and involving over 640 million voters, was more than a political contest—it was a referendum on Modi’s leadership. The BJP emerged as the single largest party, although it fell short of an outright majority. Despite this, the government’s economic and security agenda remains steady, albeit with a potentially slower pace of reforms.

India’s economy is poised for remarkable growth. Projections indicate that it could become a $5 trillion economy, securing its place as the world’s third-largest. Currently, India ranks fifth with an economic size of $3.3 trillion. The challenge lies in sustaining this momentum and ensuring inclusive growth.

Industry leaders and economists closely monitor the new government’s actions. India’s economy is projected to grow at 6.8% in FY25, outpacing other major global economies. However, the real test lies ahead. Will the new administration provide the necessary impetus to maintain this growth trajectory? Business leaders emphasize the need for policy continuity and investor-friendly reforms.

The election results signal both continuity and change. While stability is crucial, addressing structural challenges remains paramount. These include labor market reforms, infrastructure development, and streamlining bureaucratic processes. The government must strike a delicate balance between fiscal discipline and targeted spending to boost key sectors.

As India charts its course post-election, the world awaits the government’s policy roadmap. The delicate dance between continuity and change will shape the nation’s economic destiny.