New Delhi, Dec 12: According to Fitch Ratings, which released its report on Tuesday, there is a chance that policy continuity will be preserved in India since the current government is “most likely” to hold onto power during the April–May general elections. Nonetheless, it stated that the magnitude of the majority in the upcoming Indian Parliament might affect how far-reaching the administration’s reform programme is. “Fitch said in a statement that it is most likely that the current administrations in India (BBB-/stable) and Bangladesh (BB-/negative) will hold onto power during their general elections in April–May and January, respectively, indicating the possibility of significant policy continuity.”The BJP government, led by Prime Minister Narendra Modi, first took office in 2014 and retook the majority in the general elections of 2019. The general elections for 2024 are scheduled for April or May, and Fitch predicts that the Modi administration will win three terms in office. Nearly half of the Asian region’s rated portfolio, according to the global rating agency, will see presidential or legislative elections in 2024. According to Fitch, the primary focus of the elections among its rated Asian sovereigns scheduled for 2024 will be continuity.However, considering the possible geopolitical ramifications, there is a greater likelihood that the results of elections will affect credit profiles in Taiwan, Pakistan, and Sri Lanka—all of which rely on the successful implementation of IMF programmes and official support.
