To the south of the continent marked as Asia on the globe is located a country recognised as the world's largest democracy, across which large associations of citizens rally to elect those they trust with political power. The frequency, scale and impact of such elections have a profound influence on the economic order, and therefore the standard of living, of those who inhabit this country’s wide borders. India. As a result of strategic campaigning, manifestos, ideologies, beliefs and perceptions regarding national politics, citizens from across the country cast their votes in large numbers in an attempt to elect to power individuals whose views align with their own. To this end, many of the individuals competing to be elected to such positions of authority frame policies and take initiatives with the hopes of garnering popular support. A result of this constantly shifting voter psychology being combined with equally fluid policy change is volatility in the markets constituted of corporations that either benefit or are disadvantaged depending upon the actions of the ruling party, investors that make financial decisions according to their predictions regarding the actions of such parties in the hopes of maximising their financial gain, as well as commodities that witness fluctuating supply and demand as a result of such circumstances. The cruciality of this phenomenon, as well as its potential applications call for a detailed, research-driven analysis. This research paper will center around secondary research as a method of drawing economic conclusions during election periods. By establishing patterns, and supporting the thesis that economies are more active during elections, while being more optimistic about pro-business parties, this paper is of crucial importance in creating a framework for investment during this period.
Soham Janjirkar (Tue,) studied this question.