The Indian economy is highly euphoric after the victory of the congress. Even though the Bombay stock exchange lost 200 points today, it has risen by 18% since the 18th of May, the first working day after the elections, demonstrating the fact that the Indian population voted with the hope for a stable government and the economic development of the country.
If the stock exchange is taken as a thermometer or as a sign of the public opinion, in this case, there could not have been a better demonstration of the hope that the people put in the fore coming government.
This sudden rise of 17.3% in just one trading day (18th of May) is also a world record. For similar results we need to go back 76 years, to the of 15 March1933, when the Dow Jones in New York registered a jump of 15.3% in just one day.
The trend was also confirmed the successive day with a further rise of 318 points.
The confidence that the Indian market is putting on the coming government of Manmohan Singh will help India to raise funds abroad on the world markets. Let’s hope that the government of the Congress without the encumbrance of the left parties, as it was in the previous legislature, will be able to introduce reforms for a quick and better development. The experts suggest that the India should be furthermore liberalized so as to encourage direct foreign investments.
India, that faced an economic slowdown due to the global recession, requires farsighted leadership in order to rise once again. The market exuberance is surely a sign of confidence in Manmohan Singh who returns to power without the hindrance of the Left. He was the man behind the first economic reforms during the 90’s, he is an economist and a cool-headed decision maker. It was his determined leadership that help us make the civil nuclear deal with the USA.
A strong economic rise is need to bring the millions of people in the rural areas and 60% of those living in the villages above the poverty line.