India Elections

As I cast my vote today with my entire family, I realise that we have participated in the largest democratic election conducted anywhere in the world. A country that allows all its citizens without regard to ethnicity, gender, religious group or community the right to vote. This franchise to elect one’s own leaders is a unique experiment that has been conducted in India since it became independent and chose to be a democratic republic.

We as a nation have much to be proud of. But much remains to be achieved yet. To be fair this nation has largely been a peaceful mass over recent times despite being a very diverse population. For a country divided by languages, regional histories and major religious groups it is remarkable to have witnessed the growth as a nation over these years. Yes there have been hiccups and things we cannot be proud of in individual circumstances but for a country this large and for the level of economic development it remains one of the most successful experiments in democratic conventions anywhere in the world.

Many have questioned the luxury of democracy for a young economically underdeveloped nation like India. How could possibly illiterate masses (as was in the early part of this nation as a republic) elect a sensible group of politicians and expect a reasonable conduct of government that guides economic growth in a fair and inclusive manner?

India has proved that while economic policies may differ and the ability to attract and deploy capital in a country so diverse may at times be counterproductive in a democratic setup, growth has persevered albeit at a pace that leaves a bit to be desired. The economic success of its south east Asian neighbours, the so called Asian Tigers of the ‘90s demonstrated, how smaller authoritarian governments could progress fast given a diverse population. However the India model is a unique one.

India – a market yet unexplored

The electoral process highlights what is right in the country. There are many situations that are not ideal yet, but let us focus on the bedrock for all the other things to be corrected. A participative process to form a government.

Results of an election may cause the markets to be volatile in the short term, but we have seen that the markets are the most robust in democratic countries. While election results even in the developed western democratic countries gyrate on the immediate implications for corporate earnings in the near term, the longer term solidity of the system and its well preserved institutions provide for much confidence to longer term investors.

My vote would be for India markets!