New Delhi: While Prime Minister Narendra Modi and his ministers attribute success in electoral politics to important economic decisions taken by the Modi government, the chief global strategist at global giant Morgan Stanley Ruchir Sharma said that economics has its own story. Sharma also added that government’s election or re-election does not affect markets.
“The importance of politics is way exaggerated here. I feel we should not draw results from markets with who wins or loses an election. The government’s election or re-election does not affect markets. It is fascinating to track politics but economics has its own story,” said Sharma, speaking at the Rising India Summit here on Saturday.
But does he think that anti-incumbency is a cause of disruption in the markets? “The term anti-incumbency has been coined in India. Two out of three elections are lost. We have not given much thought to Indian polity while propagating the belief of “throw the puns out,” he said, adding that at the end of the day all that a citizen wanted was change.
“It is a very tough experience for a commoner in the run-up to an election. They feel not much change has happened for his personal benefit in the last five years and wants change. Politicians must think more and introspect as to why they lost an election,” he said, adding that strong economic policies in no way assured that a party or a politician would win an election.
Sharma was also critical of the growth rate being the achievement of one particular government. While asserting that there was no way India would go below 7%, Sharma said that India missed an opportunity in 2015 to tell its public about the markets.
“I waited with baited breath in 2015 during the Budget for change to happen. Here we had a PM with great oratorical skills. He could have explained the Indian markets to the skeptical Indian public but didn’t. If at all there was a dramatic change that India could have seen, that was to be in 2015. But we’ve missed it,” Sharma said.
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