The decisive triumph of the BJP in three states during the recent state assembly elections is viewed as a signal of the electorate's sentiment leading up to the imminent Lok Sabha Elections. Anticipation is high that the bolstered confidence of the central government will manifest in the forthcoming Union budget in February 2024, potentially featuring announcements aimed at revitalizing the efficiency and profitability of PSU banks, according to industry analysts.
India's economic trajectory is poised to achieve a growth rate of 6.5 percent in the fiscal year 2024-25, with a projected increase to 7 percent by 2026, as per the most recent assessments from S&P Global. Figures from the quarter concluding in September indicated a 7.6 percent year-on-year expansion in the Indian economy.
This establishes the nation as an attractive destination for foreign investments, poised to surpass China's projected growth of less than 5 percent in 2024. According to even the cautious estimates of the International Monetary Fund (IMF), India is on track to become the world's third-largest economy by 2027, outpacing Japan and Germany, with a GDP exceeding US$5 trillion.
The strong economic trajectory of the country is supported by resilient growth and favorable demographics. India, being the most populous country globally with a median age of 28.2 years, is experiencing a rebound in domestic demand, especially in private consumption and household spending, post an extended pandemic period. This resurgence is expected to facilitate business expansion initiatives, fueled by India's substantial consumer base, increasing urban incomes, and the aspirations of the world's largest young population.
Here are the potential benefits that the 2024 elections might bring to personal financing in India:
1. Economic Policies For Financial Stability:
One of the primary ways elections can impact personal financing is through the formulation and implementation of economic policies. The party in power has the authority to shape policies that can influence inflation rates, interest rates, and overall economic stability. If the elected government focuses on fostering a robust economy, it can result in lower inflation, which is beneficial for consumers. Stable economic conditions often translate into lower interest rates for loans
in India, making it easier for individuals to access credit for various needs, from buying a home to starting a business.
2. Job Creation and Income Growth:
Elections often revolve around promises of job creation and economic growth. A government committed to these goals can positively impact personal finances by providing more employment opportunities. Increased job opportunities not only reduce unemployment rates but also contribute to higher income levels for individuals. With a stable and growing job market, people have the potential to earn more, save more, and invest in their financial well-being.
3. Tax Reforms and Personal Savings:
Election manifestos frequently include proposals for tax reforms. A government that prioritizes tax policies that favor individuals can significantly impact personal financing. Reductions in income tax rates, increased exemptions, or simplified tax structures can leave individuals with more disposable income. This, in turn, enables them to save or invest more for the future, contributing to personal financial security.
4. Financial Inclusion and Digital Initiatives:
Elections often bring discussions about financial inclusion to the forefront. Governments may introduce initiatives to expand banking and financial services to underserved populations. If successful, these initiatives can improve financial access for individuals, offering them the tools to manage and grow their finances more effectively. Additionally, a government that supports and promotes digital initiatives in the financial sector can lead to greater convenience and accessibility in managing loans in India.
5. Real Estate For Homeownership:
The political climate can significantly impact the real estate sector, influencing property prices and homeownership opportunities. Governments that prioritize affordable housing and enact policies to support the real estate market can benefit individuals aspiring to own a home. Favorable policies may include subsidies, incentives, or relaxed regulations, making homeownership more achievable for a broader segment of the population.
6. Healthcare and Well-being:
Elections often spotlight healthcare policies, and a government committed to improving healthcare can positively impact personal finances. Accessible and affordable healthcare reduces the financial burden on individuals, allowing them to allocate funds to other aspects of their lives. A focus on preventive healthcare measures can also contribute to long-term financial well-being by reducing the need for costly medical treatments.
7. Education and Skill Development:
Elections may bring forth promises related to education and skill development. Government investment in these areas can empower individuals to enhance their skills, making them more competitive in the job market. Improved access to quality education and skill-building initiatives can lead to better career prospects, higher incomes, and overall financial growth.
8. Social Welfare and Financial Support Programs:
Election manifestos often include social welfare programs and financial support initiatives. These programs can directly impact individuals by providing financial assistance in various forms, such as subsidies, grants, or direct transfers. Depending on the nature and reach of these programs, they can alleviate financial burdens for specific demographics, contributing to overall economic equality.
As India prepares for the 2024 elections, the potential benefits of personal financing are significant. The choices made by the electorate and the subsequent policies implemented by the elected government can shape the financial landscape for individuals across the nation. As citizens engage in the democratic process, they also contribute to shaping a future where personal financial empowerment becomes a shared reality.