Post-Election Results: India's Diverse Sectors Await Impending Changes

India stands on the brink of transformation as the results of the recent elections signal impending changes across various sectors. With the electorate having cast their votes, anticipation grows around the new government's strategies to drive economic growth, enhance infrastructure, and foster innovation.

As India prepares for this new chapter, stakeholders from different sectors are poised to adapt to and capitalize on the forthcoming changes.

AlokeBajpai, Co-founder & Group CEO of Ixigo
Government has been actively developing religious destinations and pilgrimage centers to encourage spiritual tourism under the Pilgrimage Rejuvenation and Spiritual Heritage Augmentation Drive (PRASAD Scheme). This effort has led to a remarkable transformation in Varanasi's tourism sector, primarily driven by the revitalized KashiVishwanath corridor and the Central government's renewed commitment to promoting religious tourism. Since its opening in December 2021, KashiVishwanathDham has attracted an unprecedented 100 million visitors. In contrast, the number of visitors had previously been a mere 8 million before the renovations.

"The past year has been extremely exciting for the travel & tourism sector; especially with the government's increasing focus on boosting domestic & inbound travel. India is on track to be the fastest-growing aviation market in the world in the next decade. The rising trend of domestic air travel from tier 2,3,4 cities is encouraging, and we hope to see the budget continue to allocate resources for the development of infrastructure, technology, and safety measures at existing and new airports in these cities under the UDAN scheme" AlokeBajpai, Co-founder & Group CEO, ixigo.

GauravNarain, Manager Indian Capital Growth Fund
Gaurav agrees that there will be little impact on the banking industry overall, but notes the government may need to shift some aspects of its policy.

"The government may spend more on welfare schemes to prop up distress in rural India. This may have an impact on the government fiscal discipline and the deficit may exceed the target of 5.1 percent. This could have an impact on yields."

Asset quality will remain high, according to Narain, who says the proactive stance of the RBI in increasing risk weighting and provisioning if they are concerned about excess lending in certain market segments will mean there are no issues around a rise in non-performing assets.

AmitVasistha, Founder and CEO, GALF
AmitVasistha, Founder and CEO of GALF, called for a total GST waiver for companies with sales up to 2 crores and more streamlined processes between central and state levels to support MSMEs and startups. He stressed the need for preferential treatment in government contracts to bolster the local ecosystem.

"India is taking the lead in the global economic resurgence, with MSMEs and startups playing an increasingly vital role in sustaining and propelling this growth.To foster the growth of startups and MSMEs, steps should include establishing uniform state-level programs aligned with central government objectives, avoiding duplication of paperwork and certifications between central and state levels" remarked AmitVasistha, Founder and CEO, GALF.

GauravAggarwal, Founder and CEO, Savaari Car Rentals
"A stable government promises continued focus on infrastructure projects. With plans to develop 2 lakh kilometres of national highways by 2025, we will see an increase in road travel across India. The expanded and improved highways will be powered by both mass-transportation options like buses as well as reliable transportation options like car rentals."

Savaari, a leading car rental service, has leveraged India's robust highway network to provide seamless intercity journeys. With a presence in over 2000 cities, Savaari ensures comfortable and convenient travel experiences across the nation.

"As the highway network expands, Savaari is poised to open up new avenues for domestic travelers, offering even more routes and destinations to explore. Enhanced connectivity will further boost the reliability and efficiency of Savaari's services, making road travel an even more attractive option for all."

B Thiagarajan, MD - Blue Star
"The production-linked incentive scheme has helped the industry become stronger, and we hope the new government continues with the scheme. Additionally, the new government should continue to pursue climate action and sustainable development goals," said B Thiagarajan, MD of Blue Star, a consumer durables firm.

Sarabvir Singh, Joint Group CEO, PB Fintech
Underlining the importance of pension planning, Sarabvir Singh, Joint Group CEO, PB Fintech, has called for equal tax treatment of pension products.

"There's a need to rethink taxes on the insurance category as a whole to find a fair balance. To begin with, the maximum deduction limit of 1,50,000 under Section 80 C gets exhausted owing to other allowable expenses like PPF, loans, etc. It's time we declared a dedicated exemption category just for term insurance to fill this gap. This will also incentivise taxpayers to opt for a term plan with higher coverage. Also, a GST rate of 18% needs to be reconsidered. It's time to relook at the tax structure so that the pricing benefit reaches the end consumer and encourages more people to invest in life insurance," Sarabvir Singh, Joint Group CEO, PB Fintech.

AnujPuri, chairman of Anarock Group
Industry leaders said the current government had, over the past two terms, made substantial strides on the policy front and in the economic development of the nation.

"The economy grew with major investments in developing the country. The real estate industry always looks towards a stable government that will ensure no interruptions in the ongoing schemes and investments in infrastructure development. This, above everything else, unleashes the real estate potential of current and developing geographies," said AnujPuri, chairman of Anarock Group

The ripple effects of the election outcomes are expected to touch diverse areas including healthcare, infrastructure, tourism, education, and agriculture. The business community, in particular, is keenly observing potential reforms that could simplify regulations and attract foreign investments. Meanwhile, infrastructure projects, healthcare expansion, and educational reforms are also on the horizon, promising to enhance the quality of life and economic opportunities for millions of Indians.