According to Mukesh Aghi, the President and CEO of the US-India Strategic Partnership Forum (USISPF), despite Modi’s return to office with a slightly reduced majority, the American corporate sector remains optimistic about the continuation of economic reforms in India’s third term under his leadership.
Aghi emphasized that Modi’s victory, albeit with a coalition government, is expected to maintain the momentum of reform initiatives. He expressed confidence in the continued positive trajectory of the US-India relationship, highlighting ongoing collaborations such as the Quad, I2U2, and IMAC.
The world’s largest democracy concluded another milestone, thus adding another chapter to India’s rich democratic history. The votes were cast and the verdict was delivered.
The Board at @USISPForum extends its heartfelt congratulations to the citizens of India.
We look… pic.twitter.com/cSShadvw6A
— Mukesh Aghi (@MukeshAghi) June 5, 2024
Aghi dismissed concerns regarding potential disruptions to corporate investment in India due to the election results. He emphasized that corporations are primarily focused on derisking their supply chains from China and capitalizing on India’s market opportunities, factors unaffected by electoral outcomes.
Aghi reiterated his confidence in India’s economic growth prospects, citing recent GDP expansion and projecting a USD 5 trillion economy by 2027.
Dr. @mukeshaghi, President & CEO of USISPF, joined @shereenbhan on @CNBCTV18News to discuss #LokSabhaElections2024 and what it means for the investor sentiment on India. ?? ?? pic.twitter.com/QRkfed5RFi
— US-India Strategic Partnership Forum (@USISPForum) June 5, 2024
Regarding the geopolitical landscape, Aghi underscored the alignment between India and the US in the face of China’s assertive posture. He predicted increased cooperation within the Quad framework, particularly in economic security and critical technology domains.
Furthermore, Aghi suggested that the election results bolster Modi’s standing, countering perceptions of authoritarianism and affirming India’s democratic credentials on the global stage. He highlighted the smooth transition of power as a testament to India’s robust democratic process, contrasting it with challenges observed elsewhere.
Despite falling short of an outright majority, the BJP, with the support of key allies such as the Telugu Desam Party and JD (U), is poised to form the government.
The elections also showcased the resurgence of the Congress Party under Rahul Gandhi and the unexpected influence of regional players like the Samajwadi Party in Uttar Pradesh.
