Elections approaching in various regions of India are scaring the investors away from investing in the country.
Indian economy is likely to remain in a poor condition for some time on account of weak domestic and foreign demand. The investors and businesses will be quiet tedious owing to the upcoming elections. The Gross Domestic Product (GDP) growth rate of the country, as predicted by the economists, will be around 4.7% for FY14. The growth rate forecast, is better than the economy of other countries but the target is quiet distant to reach yet.
Recently, the World Bank lowered their predictions of GDP growth rate sharply to 4.7% from 6.1% for FY14 citing a slowdown in investments and productions.
There are no new businesses on ahead owing to lack of pace in the economic growth of the country. The growth rate in the first three months of current fiscal was slowest as compare to the past four years. Investment and consumptions have slowed down drastically in the past numerous quarters because of the slowdown. Approaching elections in some parts of India will bring along various uncertainties. The ruling and the opposition parties are expected to fall short of a majority, which might lead to a coalition of regional parties in the country. This in turn can pull the investors on back foot as the regional leaders usually come up with new policies and rules for the outside investors.
Investments are expected not to be affected by the upcoming elections but in some degrees they are being affected. They are quiet cautious about the investments at present and predicted to pick pace only after the elections period gets over.