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Narendra Modi led BJP to win general elections 2014: Moody’s

New Delhi: Projecting the ouster of the UPA government after a disappointing second term, research firm Moody’s Analytics on Thursday said the BJP is likely to form the next government after the general elections.

“The current Congress-led government is likely to be ousted after a disappointing second term. The economy is weak and business confidence and investment sit well below where they should be.

“The new government, likely to be led by BJP candidate Narendra Modi, offers a chance for better governance,” Moody’s Analytics said in a report titled Asia-Pacific Outlook: A Slow Start to the Year.

The nine-phase Lok Sabha election, which starts on April 7, concludes with the counting of votes on May 16.

Various opinion polls have suggested victory for the BJP-led NDA in the general elections.

Referring to monetary policy, Moody’s Analytics said India and Indonesia raised interest rates to help finance large current account deficits and support their currencies and the moves have been largely successful.

It said India’s monetary programme has been the more successful as higher interest rates were coupled with restrictions on gold imports and some opening up of the banking sector.

The country’s current account deficit fell to 0.9 percent of GDP in the fourth quarter of 2013 from 6.5 percent a year earlier, it said.

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