Vallabh Bhansali Says State Election Results Reflect Aspirations Of India

The state election results highlights rising aspirations of India, according to Enam Holdings' Vallabh Bhansali.

The current government is most successful in pushing the voters towards aspiration, instead of focusing on identity politics, Bhansali, founder and chairman of Enam Holdings Pvt., told BQ Prime's Niraj Shah. "When those aspirations rise, not only demand will rise, creativity will rise and therefore, our ability to add value or add meaning to the whole world will rise. So, I do feel very bullish."

Bhansali, however, sees elections only as an additional factor influencing the market. The results in Madhya Pradesh and Chhattisgarh, that have diversified voters, indicate that there is some truth in what Prime Minister Narendra Modi said: "'There is only one class poverty and there is only one hope growth.'"

He is betting on India's long-term growth. While it takes time for a "complex country" like India to "fight centuries of subjugation", there are efforts being made and that looks good for the markets and investors. If people focus on the aspiration and move away from backwardness, then it will help India, he said.

"There are people who are working very hard that how do we move from $15-20 trillion economy, which we will probably achieve partly on the basis of the demographic growth or demographic advantages, if not the dividend situation...Interest rate here are poised to go down and that makes a big thing for the markets."

Focusing on larger allocation from foreign investors and long-term players, Bhansali spoke about political stability and the need to have multiple Indian sovereign bonds in the global space. He sees India at the beginning stage of product nation. But with the growth in different sectors like infrastructure and defence, "value adding economy is just begging to shape", he said.