Billionaire investor Rakesh Jhunjhunwala expects the Bharatiya Janata Party-led National Democratic Alliance (NDA) to get around 300 seats. He also believes democracy, though necessary, is the biggest hindrance to India’s growth.
“The biggest thing that limits India’s growth is democracy but it is needed. We cannot overrule it,” said Mr. Jhunjhunwala, in an interview with CNBC TV18, when asked about the key things India needs to focus on and improve. He said the bureaucratic system is also a shortcoming but it can be undone by technology and time. Commenting on the exit polls, he said the BJP would get around 250 seats while its allies would get another 50, giving the NDA a total of around 300 seats.
Asked about the impact of the results on the stock markets, Mr. Jhunjhunwala said the markets made a bottom at around 10,750-11,000 assuming the NDA gets a clear majority. “If the NDA doesn’t get a majority, that will not upset the market so much... but a situation where the BJP and NDA are not able to form the government that will be very troublesome for the market. But I think that is not likely,” he said.
Interestingly, he said the expectations from the second term of the Narendra Modi-led government are moderate and the results will be far better than the first term. “The biggest thing that makes me very very bullish... slowly and surely, crony capitalism in India is dying. And governance is what brings about real growth,” he told the business news channel.