The BJP’s Manifesto for the 2024 General Elections bodes well for Indian equities, with a strong emphasis on continuity in reform efforts while maintaining financial macro stability. Anticipated to dominate the upcoming polls, the Party’s agenda highlights key sectors poised for growth. Direct beneficiaries include Capital Goods (railways/defence), Housing/Mortgages, Tourism, and Aviation, with Textiles and Pharma API also expected to gain with a preference for infrastructure and manufacturing sectors, particularly focusing on SMIDs.

Continuity in maintaining fiscal and current account stability is underscored in the manifesto, reflecting the BJP’s conservative approach. This commitment is crucial for sustaining India’s macroeconomic growth.

The manifesto also pledges to continue the state-led infrastructure development drive, aiming to construct over 5,000km of railway tracks annually and expand access-controlled highways by 15,000km. Additionally, there’s a focus on EV charging infrastructure and green initiatives, including the ambitious target of 500GW of renewable energy. Affordable housing receives attention, with plans to strengthen RERA and develop satellite townships while addressing slum replacement and the PM-AWAS scheme. Clarification on funding for infrastructure projects, likely through asset monetization, is expected in the upcoming budget.

Furthering the manufacturing agenda, the BJP aims to establish global hubs for autos/EVs, electronics/semiconductors, and railways, while emphasizing defense manufacturing localization. Textiles and pharma API sectors are highlighted for growth potential. The aviation hub is also set for strengthening. Manufacturing companies are expected to benefit from coordinated policy support and supply chain diversification trends, favoring asset-heavy players.

In the social sector, the BJP prioritizes outcome-based strategies over subsidy-driven approaches. Focus areas include improving quality of life through piped water and LPG connections, achieving zero electricity bills through renewable energy, and lowering healthcare costs through state insurance schemes. Efficiency in spending is emphasised to maintain fiscal balance without increasing expenditure risks.