Stock market soars in Indian election

No one expected, once considered India's independence since the competition among the most intense election of a party to the moment, the Indian National Congress Party (Congress) to win the unexpected advantage, will be again before June 2 to lead the cabinet. By this effect, May 18, the Indian stock market surged 17.34%. What impact will the outcome of the general election have on the Indian economy as one of the BRICS members who are hoping to lead the world out of the recession? Can the new government lead the Indian economy out of the doldrums?　　Liu Xiaoxue, a deputy researcher at the Asia-Pacific Institute of Social Sciences, said 18th in an interview with this reporter that the party's apparent winning advantage will help to improve the new Government's implementation of reforms and other economic policies to ensure that India recovers its long-term growth situation as soon as possible. One-party-Shang reform binds the biggest feature of this election result is that the Congress has won a landslide, the new government will show a party-wide situation. In response, the outside world reacted very positively. The Wall Street Journal reported that India's ability to have a stable government is also "the Gospel" for other countries.　　In the economy, India is seen as a potential driver of a new round of economic growth after the global recession begins to slow, as the second-largest populous country after China. The Congress-led coalition has led the country to an annual growth of 9% in the past 4 years, it was this brilliant economic answer that laid the foundation for the party's high vote, and made the 76-year-old prime minister, Manmohan Singh, the Prime minister after Nehru's second consecutive 5-year term in India's history. Yet, with the financial crisis now border, India's economy faces a grim test. According to the RBI, the Indian economy is likely to grow at 6% this year, its weakest growth since 2003. Liu Xiaoxue that the Congress party, which has always been keen on reform, might use its greater voice in the new government to carry out its reform mentality, one of the main directions being labour law reform. According to the introduction, India's existing labour law has been implemented for more than more than 40 years, "beyond the conditions of economic development over protection" is considered to be the inherent disease of the system. The consequence is that there are 80% of informal jobs in India and the grey economy that comes with it, while tough labor rules have significantly limited the incentive to expand the scale of formal business, and companies under strict supervision complain Budie. "The new government may actively promote labour law reform, but it will not be too large because it still has to protect workers ' interests in the context of the crisis," he said. "Liu Xiaoxue said. Meanwhile, the party's once-aggressive financial sector reform may not be speeding up, because "the global financial crisis has put a question mark on the direction of financial development". Regulation or liberalisation?　　Congress may need more caution than radical. Focusing on the rural relaxation of investment and strengthening the development of rural areas will be one of the core policies of India's new government. For India, which has one-third of millions of people living in poverty, there are still 228 million who live at less than 2 dollars a day. Solving the problem of poverty in rural areas is anyThe Indian poor, which accounts for 60% of the electorate, is a group that no party can afford to ignore. Earlier, the Indian government, led by Mr Singh, has begun to increase reconstruction spending in poor rural areas and urban slums, with data showing that Indian farmers have been growing in income over the past 4 years. On that basis, the Congress party pledged to supply cheap rice and wheat for the campaign, and offered to reduce farmers ' microcredit loans, invest in rural roads and create more jobs. "This is an example of the transition from good economic policy to good political arrangements." "The government cannot ignore rural areas," said Chad, a political science professor at the Nehru University in India. Promoting rural employment is the best project, since at least 40 million people will benefit from it. "In addition to the farmers, the new government of India is full of anticipation of the years of coveted into the Indian market and always imprisoned overseas investors." The Congress party, which has been held hostage by other political parties in the alliance, has often felt "Chungzhi" in the past 5 years in the process of governing. Its disagreement with the coalition's political parties is whether it allows retailers like Wal-Mart to enter India to increase the proportion of overseas investment in the insurance industry. Analysts say Congress, which has the absolute right to speak, is likely to further loosen foreign investment in Indian insurance and banking.　　Indeed, foreign direct investment attracted by the country has risen 60% since 2004, when Mr Singh became prime Minister. The rally has surged as Congress's lead has exceeded expectations, and market insiders speculate that India's stock market is expected to continue its longest rally in almost 3 years. 18th, the first trading day after the election results were announced, the Indian Mumbai 30 index and the Indian National Stock Exchange Index surged 17.34% and 17.74% respectively to 14284.21 and 4323.15 points.　　Previously, two indices had risen 23% and 24% respectively this year. Indian business people are bullish on the party's victory, saying the results show confidence in the Indian government's response to the global financial crisis and the threat of regional terrorism. They say the new government should be able to introduce more fiscal stimulus packages to protect high growth rates, restore economic reforms and open up retail, pensions, insurance and defense industries. In an interview with the media, Amit Mitra, Secretary General of the Federation of Industry and Industry, said the results helped to boost sentiment in the Indian business community, which had been the biggest concern since the political instability and the split within the government. "Look at the performance of the Monday Indian stock market, you know." "he said.