Fitch's Schwartz, Mirae's Chadha on Modi, India's Economy, Markets

The video discusses the implications of BJP's victory on fiscal continuity and structural reforms. It highlights India's credit rating challenges due to fiscal deficit and debt burden, and the need for fiscal consolidation. The discussion covers investment opportunities, job creation, and the impact of government spending on budget deficits. It also addresses state-level fiscal challenges and the importance of structural reforms. Finally, it explores investor confidence and economic policy expectations in Modi's second term.

What is one of the main expectations from the BJP's renewed victory?

• Reduction in military spending

• Fiscal continuity and structural reforms

• Expansion of the tourism sector

• Increased foreign aid

What is a significant factor affecting India's credit rating?

• Low literacy rate

• Poor infrastructure

• High fiscal deficit and debt burden

• High unemployment rate

What fiscal target has the Indian government committed to under the FRBM act?

• A central government deficit of 3%

• A central government deficit of 4%

• A central government deficit of 5%

• A central government deficit of 2%

What is a major challenge for the Indian government in the next five years?

• Increasing exports

• Job creation

• Improving healthcare

• Reducing inflation

How does the US-China trade war impact India's economic prospects?

• It has no impact on India

• It creates opportunities for India to attract more foreign investment

• It increases India's import costs

• It reduces India's export opportunities

What is a key factor that could boost foreign investment in India?

• Implementing labor and land reforms

• Expanding the public sector

• Lowering interest rates

• Increasing agricultural subsidies

What economic factor is expected to normalize and boost demand in the coming quarters?

• Liquidity

• Exchange rates

• Interest rates

• Tax rates