'The markets would be comfortable with either a NDA or UPA-led coalition'

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: India is currently in the processs of electing another government at a time when its exports have fallen, IIP figures have declined and the fiscal deficit has further deteriorated, following the global financial market crisis. With the uncertainty over the election results looming large over the market participant's mind, Motilal Oswal, chairman and MD, Motilal Oswal Financial Services Ltd, spoke with FE on the importance of this election on the markets and economy and the expectation of the market denizens from the new governments. Excerpts:

•Given the current global economic slowdown and the domestic economy feeling its pressure, how important is the forthcoming general election for the Indian capital markets? What will be the key challenges that the new governments has to address and the progressive policies that have to be implemented to steer the Indian economy out of the current situation?

With all the turmoil around us, the general elections could not come at a worse time. There is a lot of precious time that would be wasted in electing a new government, which should have been used to tackle the crisis instead and hence the importance of a new government coming to power quickly could not be emphasised further. There is plenty of work that needs to be done to bring the economy back on track as soon as possible and to achieve this, the country needs a stable government. The two most important issues required to be addressed by the new government is 1) to give a boost to the GDP growth rate through measures boosting consumption and investment and 2) maintain fiscal discipline through reduction of budget deficit, either by FDI inflows or whatever other means possible. The fiscal deficit has really got bloated to alarming levels in recent times. What is urgently required is the doing away of the "chalta hai" attitude, which has been the bane of Indian politics so far.

•With none of the major national political parties (BJP and Congress) likely to form a government on their own, which is the likely combination that the market participants would be comfortable with and why?