Markets and Modi both witnessed correction in view of AAP’s landslide victory in Delhi. The markets, though, soon recovered, expecting the Delhi result to put further pressure on the Central government to speed up the reform process. Expectations of a market-friendly Budget was yet another reason. However, the short-term outlook may remain tense due to the lacklustre Q3 performance of the corporate sector and global factors, but the medium and long-term views remains decisively bullish.
The Economic Survey clearly points to this fact when it observes that “India has reached a seat spot—rare in the history of nations—in which it could finally be launched on double digit medium term growth trajectory”. It forecasts a growth rate of up to 8.5 per cent for FY 15-16, making India one of the fastest growing major economies, surpassing even China.