External Affairs Minister S. Jaishankar at the NSE event in Mumbai on Monday.
| Photo Credit: ANI

With markets turning volatile owing to fears of an uncertain outcome of the Parliamentary elections, Union External Affairs Minister S. Jaishankar on Monday said the volatility would reduce with the passing of every poll phase.

“To me, it is very clear, where the election is going… people may have a debate on the exact number and in a democracy they should be debating it also,” he said.

“I am very sure that as round after round takes place, market would be less and less volatile because markets will get a sense of where those numbers will end up,” he said while speaking at a function organised at the National Stock Exchange of India (NSE).

“I am very confident that those numbers will end up very very good for us,” he added.

On Monday, the S&P BSE Sensex witnessed volatile movements of 997.5 points both ways during intraday trade. It dramatically recovered losses and closed with gains of 112 points at 72,776 points at close.

Meanwhile, Mr. Jaishankar while speaking at a seminar on Indian Capital Markets, said, “I have every confidence that we will not only have a strong and a stable government, but will have the government with a stronger majority, and therefore, with a greater ability to take decisions which will take this country forward.”

“Because countries don’t go forward on auto pilot, you need a leader, a vision, a policy,” he added. 

Commenting on the alleged issue of redistribution of wealth among citizens he asked, “What does an investor want? If today you tell an investor that we are going to survey his/her investment, and who knows maybe we will take your investment and given it somebody else [what would happen].”

“An investor wants easier to do business, wants a talent pool which is better skilled and educated, wants better infrastructure,” he said, adding that none of the foreign investors today wanted India to return to the pre-1992 era.

He said today the world was looking for more sources of production in order to de-risk the global economy. 

“The world doesn’t want a single geography of production. The world is looking for more supply chains and for more countries, where something as critical as chips and semiconductors can be made because they control the rest of global productions in every other space,” he said.

The Minister said he was seeing public investment continuing and there was greater enthusiasm for private investment.

“I think a lot of people are looking after June 4.. .they will see those numbers and that will strengthen their resolve to invest in this economy. I definitely see much more foreign investment coming in. Right now, everybody is like “let June 4 happen then I would take a call.” That’s the kind of situation we are in,” he added.

Stating that the South Asian economies, including China were in turmoil today, he said India had performed well.

“When a stable government comes to power, India will be in a better place to grab this opportunity and there will be changes in the attitudes of Foreign Portfolio Investors as far as India is concerned,” he emphasised.