India is the largest democratic country in the world. General elections are held here every five years, where crores of voters vote for their favorite leader and party. But apart from this, online surveys, referendums and live voting are also conducted from time to time to understand where the public is inclined.
Narendra Modi
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Last 5 hours: 26.7K
Rahul Gandhi
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Last 5 hours: 18.4K
Other Party
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Last 5 hours: 7.9K
Impact on Indian Politics and Economy: Stock Market, Currency and Real Estate
Indian politics has always been a topic of discussion among the public. The recent online voting revealed how Narendra Modi, Rahul Gandhi and other political parties are getting public support. This survey indicates where the public is leaning. But more importantly, politics has a direct impact on India’s economy (Economy), stock market (Stock Market), currency (Currency) and real estate (Real Estate) sectors.
Impact of politics on Indian economy
Whenever there is instability or uncertainty in the political environment, foreign investors become cautious. This directly impacts the country’s GDP Growth, Inflation and Investment Flows. If the government is stable and policies are clear, investor confidence increases and the economy grows rapidly.
Why is the stock market going up and down?
- If a party sees more public support, investors feel that the government will become stronger and there may be a Bullish Trend in the market.
- Whereas if disputes such as volatility or “vote chori” come to the fore, the market tends to see a decline (Market Crash).
- FIIs (Foreign Institutional Investors) and DIIs (Domestic Institutional Investors) also invest capital just by looking at the political environment.
- Indian currency (INR) is influenced by both politics and the international environment.
- If political disputes escalate, foreign investors withdraw money, causing the rupee to fall against the dollar.
- It also has a direct impact on Import-Export. A weak rupee further increases inflation.
- On the other hand, when trust in the government increases, foreign capital comes in and the rupee strengthens.
During election time, if the public seems to be more inclined towards supporting any party, then Builder and Investor also start investing for the long term.
When there is instability, new projects stop and property prices fall.
The political environment is not limited to just election results, but it has a deep impact on India’s Economy, Stock Market, Currency and Real Estate. This is why every investor and common citizen keeps an eye on every movement of politics.