India gets ready to vote in the world's largest democratic exercise, commencing last week, from 11 April to 19 May.  Polling will take place over 39 days at over one million polling stations with the results being announced on 23 May.  With over 900 million people above the age of 18 and eligible to cast their ballots at a million polling stations, these elections will be the largest the world has seen. The number of voters is bigger than the population of Europe and Australia combined.

Therefore, a question on many individuals lips is whether the Modi Government has really made a difference for India in the last five years.  Modi’s government was established back in 2014 and at that moment there was a great air of rejoice from businesses, markets soared, with billions of dollars being injected into Indian stocks by foreign investors. The Modi election campaign had promised jobs on a great scale together with a large economic reform agenda.  The Government had promised to place 10 million people in employment and eliminate unemployment. However, according to a Report conducted by, the independent think tank, Centre for Monitoring Indian Economy (CMIE) in December 2018 unemployment was currently at 7.4%, a 45-year high and a figure which is predicted to continue to rise in 2019. It is believed, this was partly as a result of the attempt to demonetize currency in 2016 and rushing through a poorly drafted goods and services tax (GST) system in 2017. Both of which received immense criticism and has been considered to be directly responsible for the slow down in the economy.

Under Modi’s government a number of reforms were accomplished, and restrictions lifted in sectors for foreign direct investment (FDI) to inject interest from foreign investors.  However, to date the reform agenda still remains work in progress and whilst FDI has increased in India it has not had the momentum that was anticipated from foreign investors. Nevertheless, in 2018 the Indian economy overtook France to become the sixth largest economy and by 2020 it is anticipated to surpass the United Kingdom to 5^th place. 

India’s growth in consumer spending is more than double the global rate and it is anticipated to be the third largest in the world by 2030, behind the US and China. Therefore, the increase in consumer spending and changes in the consumer market are huge opportunities for businesses interested in the Indian market.  Businesses interested in selling to a mass unified market in Asia will find immense opportunities in India. Due to India’s federal governing system means that the business environment is different from state to state with each having its own policies and initiatives.  This allows businesses to be able to benefit from a state-based market strategy rather than treating India as a uniform market.  

Whilst many are examining Modi’s policy record, there are a number of reasons to remain optimistic about the economic potential of India.  Whoever wins these elections and forms a government will control the destiny of the world's largest democracy.