Market Volatility And Elections Should Be Seen Separately, Says Amit Shah
India will become the third largest economy of the world under the third tenure of Modi government, Shah said.
Home Minister Amit Shah said that market volatility should not be attributed solely to the ongoing elections, as it is a normal phenomenon.
"A drop of 300-400 points after a rise of 1,200-1,300 points is a normal occurrence and happens 15-20 times a year, even without elections," Shah said in an interview with NDTV Editor-in-Chief Sanjay Pugalia.
Shah reiterated that the National Democratic Alliance will return to power with a seat tally of over 400, with Narendra Modi at its helm, which he believes will cause markets to rise.
In an interaction with NDTV earlier this month, Shah had predicted that the market would “shoot up” after the election results are announced on June 4, 2024.
However, benchmark indices Nifty 50 and Sensex have reversed their record highs from the past two days, falling for the fourth day in a row. Investors are jittery ahead of the election results, with volatility, as measured by the India VIX index, inching closer to 25 on Wednesday after hitting a two-year high earlier this week. The previous highest level was 28.13, recorded on June 16, 2022.
India To Be Third Largest Economy Under Modi 3.0
Shah stated that the Modi government has outlined a clear economic policy path from 2014 to 2024. He highlighted achievements such as increased forex reserves, a reduced fiscal deficit, strengthened PSU balance sheets, and boosted infrastructure spending over their two terms.
Looking ahead, Shah noted that India has taken the lead in emerging sectors like green hydrogen, electric vehicles, semiconductors, and space business, which will be a focus for the next 25 years. "India will gain tremendously in the next 10 years with the focus on emerging sectors," he said.
Shah said that the BJP has added a "human touch to GDP representation" through various welfare schemes launched over the past two terms. He believes that supporting the economically disadvantaged will ultimately boost India’s GDP.
"The purchasing power of the Indian common man has increased. We will become the third-largest economy in the upcoming tenure of the Modi government," Shah said.
