The Indian parliamentary elections in April and May were the largest exercise of democratic rights in history. Some 438 million of India’s 714 million electorate voted. The left-wing communists who were part of the coalition government in the parliament for nearly four of the previous five years were nearly wiped out. The right-wing coalition also lost substantial ground. The Congress Party, with its coalition partners, received a clear mandate to form a government and continue the process of modernizing and developing India. Industry was elated. The Bombay Stock Exchange index (SENSEX) soared by 2,111 points, from 12,173 to 14,284.
Although India’s growth rate had come down from nearly 9% to below 6% because of the global recession, expectations now are high and India remains an attractive destination for foreign investors, especially in the new sectors that have opened up and now are booming.
