https://www.deccanherald.com/opinion/the-modi-fication-of-india-is-still-thrilling-markets-2993868
The ‘Modi-fication’ of India is still thrilling markets The Indian prime minister is so successful at polarizing the majority Hindu vote by playing on its fears, he doesn’t have to pursue profligate — or even populist — fiscal policies
the appetite for a third term for the Indian leader is very high in the global financial industry. “Modi has done an unbelievable job in India,” JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon said Tuesday at the Economic Club of New York. Both Goldman and JPMorgan are predicting a deluge of overseas capital after general elections are over on June 4. (The BJP is favorite to win the contest.)
Still, this is the start of a new compact between markets and Modi, one in which investors are betting on what he won’t do, rather than what he will.
The first belief is that while Modi 3.0 may take a more authoritarian turn, the Indian leader won’t follow the lead of China’s President Xi Jinping. The stock market will still have to read the tea leaves to figure out which business group is likely to be blessed with juicy contracts and favorable policy, but there is little risk of New Delhi turning the screws on the private sector. In other words, no nasty surprises like Beijing’s crackdown on its technology industry.