Indian economy will face temporary hiccups in Q1 due to poll

The Indian economy is likely to face temporary hiccups during the April to June period with India going to poll, said a leading industrialist.

The Indian economy is likely to face temporary hiccups during the April to June period with India going to poll, said a leading industrialist.

“There tends to be some period of uncertainty resulting in a temporary slowdown,” Wheels India MD Srivats Ram told The Hindu. “I see a temporary disruption and a relative inaction for a couple of months,” he added.

Pointing out that 2024 is a year of mega elections with India, the U.S. and Indonesia going to polls, he said during the period of elections there is always a certain uncertainty.

According to him, Indian companies’ performance during Q1 would be affected but it would not change the overall tone of the Indian economy.

“The Indian economy is strong and there is no reason to be pessimistic about the future. India is also a beneficiary of the China de-risking strategy of global companies,” he added.

Asserting that the Indian economy’s growth trajectory would pick up soon after the elections are over, he said that it has a certain amount of momentum with industrial-related output and the services sector continuing to be positive.

While the services sector posted stellar growth, agriculture is in the negative despite government support and incentives. Mining sector is a mixed bag and the momentum will continue after polls.