Coalition may slow decision making: Moody's Analytics on election results

Moody's Analytics said that the reduced political stability and the need for consensus building that is inherent with a coalition government, might erode investor confidence in the near term

Coalition government might be a good thing for India but it could slow decision making and potentially dilute some key policy initiatives of the Bharatiya Janata Party, Moody’s Analytics said in its India’s election review on Friday.

It said that the upcoming Union budget, due in the September quarter, could be an early indicator of policy priorities.

“The BJP’s greatly weakened position marks a significant shift in the political landscape. Just how well it goes at forging new alliances to govern effectively and steer the economy will be closely watched in the coming years,” the review said.

Moody’s Analytics said