BJP and its allies’ sweeping win in Uttar Pradesh state elections will boost Prime Minister Narendra Modi’s confidence to further his agenda of empowering the poor, allowing him to augment spending on infrastructure building, social welfare and rural development.
Research and brokerage firm CLSA said that it expects the government to focus further on social agenda and rural plays. Modi’s long-term themes, including his vision of housing for all, and doubling farm incomes by 2022, will gain prominence, CLSA added.
Earlier Friday, Narendra Modi-led BJP and its allies emerged absolute winners in India’s largest state, with a historic mandate of 325 seats in an assembly of 403. Modi had led the campaign on the plank of inclusive growth and development with job creation, infrastructure development, farmer welfare, and other such measures.
The theme is consistent with the central government’s push for inclusive growth with a heavy focus on infrastructure. Even the central government’s Union Budget for the next financial year 2017-18, though not populist, proposed heavy public spending towards boosting rural agriculture sector. The government chose to concentrate on augmenting expenditures on the sectors that have been most successful and yielded results over the past few years, Jaitley said in a post-budget discussion.
You may also like to watch:
“What has propelled this victory for the BJP is the success and popularity of various social initiatives like Jan Dhan, Swachh Bharat, Ujwalla etc. So one can expect more money and efforts behind Ganga river cleaning, financial inclusion, building of roads and toilets, distribution of cooking gas connections amongst the poor and rural electrification,” Ashish Kapur, CEO, Invest Shoppe India Ltd, said.
Earlier today, gas distribution stocks surged on the hopes of the government’s push for LPG connections in every home and augmented city gas pipeline network.
Investment advisor Sandip Sabharwal said in an interview to ET Now he expects infrastructure to be huge focus for the government. Finance Minister Arun Jaitley had allocated a record Rs 3.96 lakh crore to the infrastructure sector in the Union Budget for 2017-18, including Rs 2.41 lakh crore for transportation alone. He proposed Rs 640 billion investments in national and state highways in the next financial year.