Uncertainty around India's economic policy at 27-month high in May

Economic policy uncertainty was at its highest in over two years in the month of May. Election results were declared on May 23, granting a majority to the ruling Bharatiya Janata Party (BJP) for a second term.

Index levels more than doubled over March. It rose from around 40.6 to 83.6 in May, shows monthly data from Bloomberg. The index is a measure of economic policy uncertainty based on news coverage of policy issues.

A similar phenomenon was seen around the time of the 2014 elections. However, the rise ahead of the results weren’t as sharp. The index rose from