Steven O’Hanlon, Head of Fixed Income at ACPI Investment Managers comments on what the Indian election result means for investors as BJP wins a landslide victory…

This decisive result is undoubtedly significant. We believe it represents a decisive mandate for growth and investment over subsidies and inflation – features of previous regimes. The clear mandate given to the BJP party, we believe can provide the type of stability in government not seen in India for a long time. Together with a strong RBI, this can create the conditions for sustainable growth for India.
 
The current excellent management of the central bank and India’s improving fundamentals means the country’s bond market once again merits interest. For those who have already invested, after quite a few dark quarters, the promise of an investment in Indian fixed income is once again looking bright. The policy errors of the recent past seem to be behind us and with a new Government overtly committed to continuing growth the hope is that this will continue.