OK, so finally after a lot of drama, chaos and all kinds of shady tactics, the results are out and the Congress led UPA government has finally won the NO-Confidence motion. This means that the current government will continue for atleast some time. Not only just winning by establishing their majority over the Lok Sabha they managed to pass the threshold mark of 272 which signifies that they are truly in majority even if we take the abstentions into account.

What this means for Indian economic growth?

  • The government will be able to take independent policy decisions which they were unable to take till now due to the Leftist support (or rather the lack of it).
  • More economic reforms are expected in Banking, Insurance and Investment sectors which the Left parties were opposing.
  • This paves the way for the Nuclear Deal with the United States without any more expected hurdles. Although, I am not personally confident about the deal but in my opinion this is better than what we could have got in any case.
  • Boost for the Stock Market:The investor sentiment had touched new lows with continuing inflation, instability in the government and global economic slow-down led by the sub-prime crisis.

    • I am quite sure that this would surely reflect in the Investor sentiment in tomorrow’s Stock Trading.

    Overall, I welcome the winning of this confidence motion by Dr. Manmohan Singh Government.