Modi creates history! In a global first, a government that introduced GST has been voted back to power

Lok Sabha Elections 2019: Modi government has retained power at the Centre as is clear now from counting trends - NDA is set to win a massive majority. The key thing to note amid all this chaos is that a government, which introduced GST, has been voted back to power for the first time is history - globally.

This is the first time in world history that a Government that has introduced GST in a country has been voted back to power. Reuters

Lok Sabha Elections 2019: Modi government has retained power at the Centre as is clear now from counting trends - NDA is set to win a massive majority. The key thing to note amid all this chaos is that a government, which introduced GST, has been voted back to power for the first time is history - globally. Dhiraj Relli, MD & CEO, HDFC securities told Zee Business Online, ''The results have raised hopes of the issues being faced by the economy being tackled in a firm and prudent way. This is the first time in world history that a Government that has introduced GST in a country has been voted back to power. Global issues may bother a bit less in the near term though their shadows can linger on." Earnings growth challenge will continue in the near term till monsoon spread and intensity is assured and liquidity situation eases.

The re-election of NDA alliance has raised hopes of Indian economy and markets gaining momentum. While not just GST most of the economic and financial reforms by Modi government helped Indian economy get stable, reduce inflation, supported entrepreneurship in India.

''India needs to work on skills and lowering the cost of capital. Introducing police & judicial reforms are of paramount importance. PM Modi emphasises doubling of farm income and housing for all as his personal passions, both of which have the power to lift India out of poverty. Also, the money waiting on the sidelines, whether domestic or international, will now have a great scope of heading to India - promising a higher growth rate for India,''Relli added.

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The latest trends show BJP and its alliance partners leading in 343 seats out of 542 Lok Sabha seats in contention this time. However federal governments had lost the elections in Malaysia, New Zealand and Australia following the launch of the GST there. The popular anger in these countries was primarily due to the resulting high prices of goods and services after the tax reforms were implemented.

The Modi government launched GST on July 1, 2017. The biggest indirect tax regime that has resulted in lowering the cost of most goods and services, while making Indian economy globally competitive.

Ashish Sharma, CEO, InnoVen Capital said, “The last government has been very supportive towards the Start-up eco-system and with continuity, we hope that this will remain a priority area for the new government. There is a clear recognition that the centre of gravity continues to move towards new economy business models, which are starting to become a meaningful contributor to economic growth and generating employment”

As far stock market is concerned, Sensex has maintained a CAGR of approximately 13 percent over last 10-years that proves that equity as an asset class has the potential to deliver best performance over the long-term. There is ample evidence that long term investors are expected to earn impressive returns, irrespective of geopolitical or domestic events.

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