An alliance of regional parties in India is eyeing power in the general election due by May. That’s rattling some of the nation’s companies.
Eleven disparate groups holding 17 percent of parliamentary seats formed a bloc this month to pass legislation, a precursor to a possible alternative to the ruling Congress and the main opposition Bharatiya Janata Party. Moody’s Investors Service warned last week that any so-called third front government could lack a common agenda to revive the country’s struggling economy, pressuring both the rupee and India’s credit rating.
“The minimum they can do is to remove the uncertainty on the policy front so that having invested we don’t start regretting,” Debnarayan Bhattacharya, managing director of Hindalco Industries Ltd., said in a Feb. 14 interview, referring to the next government of Asia’s third-largest economy. Otherwise “people will think twice, thrice, four times before investing.” Hindalco is India’s second-largest aluminum maker.
via Third Front Stokes Fears of Unstable Government: Corporate India – Businessweek.
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