India’s Lok Sabha Election: A Game Changer for Export Commodities

The world has set an eye on the current Lok-Sabha election in India, which is supposed to be the world’s costliest and largest election. Among this election hype, the current ruling government is about to win again with a complete majority. The coming of the same party to power, and their manifesto, indicates continuity and the growth of several economic sectors, with stability in policies, and long-lasting diplomatic relations. 

Explore how the election in India, offers immense business opportunities to manufacturers and exporters

What India’s Election Means for Global Companies?

India’s Lok-Sabha election results for the international governments and business environment have become a turning point with endless opportunities. As per the market reports, several sectors will get direct government support through various policies and financial assistance.  Here is a quick survey of the Indian market growth

How Govt Schemes Support Manufactures and Exports From India?

Suppose the political analysis of the exit poll result of the Lok-Sabha election is true. In that case, there will be a continuity of government policies for domestic and international manufacturers. Here are the top govt policies –

Make in India:

This initiative aims to make India a global manufacturing powerhouse and export hub. It also presents a lucrative business environment for foreign investment by offering tax rebates, financial assistance, building special economic zones, etc.

Production Link Incentive Scheme (PIL) –

To learn from supply chain disruption during the pandemic, the Govt of India framed a game-changer policy, called the PIL scheme to reduce the country’s import dependency. Under this scheme, the government includes more than 14 sectors. The total outlay of these 14 Schemes is more than USD 26 Billion.  Among the sectors, Auto Components, Semiconductor and Display Fabrication, Advance Chemistry Cell Batteries, and Medical Devices are the top, etc.

PM Gati Shakti –

A national mission to enhance India’s infrastructure connectivity with a total outlay of ₹100 to ₹110 lakh crores. This visionary policy aims to create a seamless logistics network for faster and cheaper movement of goods.

Promotion of ODOP –

This One District One Product (ODOP) initiative supports and empowers local manufacturers by giving them market access, and financial aid to foster district-specific export products.

Apart from these policies to promote exports from India, the growth of other sectors is also expected to grow with the formation of the new government.

The production of Iron and steel, cement, metals, and engineering goods-based products are expected to grow in coming years, for instance, the PM Gati Shakti program will get a boost after the election.

The Indian Govt has also set a visionary plan for India to position itself as a Global Railway Manufacturing Hub. They will also initiate talks with countries to export made-in-India trains to friendly countries.

There will be a policy for Making India a global aviation manufacturing hub, which will help the manufacturers to develop aerospace manufacturing in the country.

Making India self-reliant in semiconductor and cheap manufacturing, Govt has already introduced a PIL scheme with an outlay of $ 10 billion.

Framing strategic and constrictive policy for Automobile and EV manufacturing, and global leader for Pharmaceutical, shipbuilding, and textile.

India’s Lok-Sabha Election: An Opportunity for Export Commodities

As per the market speculation and the manifesto of the current ruling government, the growth of certain commodities will increase by double digits.

Among India’s top export commodities, Mineral fuel and Oil, equipment for electrical machinery, nuclear reactors and boilers, are the top exports with $18.2, 14.4, and 11.9 billion from Jan to April 2024. The current pharmaceutical drugs and medical equipment export stood at $8.4 in the first four months of 2024 and is expected to reach $130 billion by 2030.

It’s expected that if the policies continue without any changes, the export of all top 10 commodities will be doubled in the coming years.

What are India’s Top FDI sources and Sectors?

India is counted among the top countries for FDI inflow into the country, having more than $600 billion of FDI reserve in various forms. From 2023 to 2024, Singapore, Mauritius, the USA, and the Netherlands, become the top source for India’s FDI with $11.7, $7.9, $4.9, and 4.92 billion.

If the FDI inflow is segregated into sectors. Then computer software & hardware, Construction activity, and the Power industry become the top FDI receivers with $7.9, $4.4, and $1.7 billion from April 2023 to March 2024.

This FDI inflow presents the trust of the foreign market toward the Indian market and the future growth of certain products with the highest FDI.

Countries’ economic relations strengthen with the stability of a nation, and the result of the Indian Election will foster economic collaboration and deepen diplomatic ties. As the exit poll result, India is believed to continue with free and open economic policies.