Foreign investors have shown reluctance towards the Indian stock market, attributing their hesitation to concerns over the country's political landscape under Modi's leadership. The market has experienced a significant downturn, with Mumbai's largest stock exchange bearing the brunt of the uncertainty.
Over the past months, the Mumbai Stock Exchange has witnessed a decline of 600 points, causing substantial losses for investors. Foreign investors, in particular, have been quick to divest, selling shares worth billions of dollars amidst apprehensions surrounding the upcoming elections and the possibility of Modi's return to power.
The political climate in India has caused investor unease, with Modi's policies being labeled as extremist by critics. Such sentiments have led to a decrease in foreign investment, with the current level dropping to 18%, a concerning low in recent years.
According to reports from Bloomberg, fluctuations in currency values, particularly the rupee against the dollar, have further destabilized the Indian stock market. Analysts warn that under a BJP-led government perceived as extremist, the Indian rupee could plummet to 84-85 against the dollar, exacerbating the situation.
Prime Minister Modi's alleged misuse of economic and media resources for political gains has only served to deepen the crisis, with investors expressing apprehension about the future trajectory of the Indian economy.
