India Election 2014: Modi Win Can Bring Foreign Money Back to India

Narendra Modi has come a long way since he was boycotted by the European Union over his handling of riots in Gujarat province.

Western nations shunned Modi after bloodshed in Gujurat in 2002, where more than 1,000 people were killed in religious rioting while he was chief minister.

His ascendance on the national stage led to a change of heart last year among Western leaders, who predicted the possibility of Modi's victory. Now, with the victory secure, Western businesses are lining up behind the pro-growth candidate who wants to preside over a new Indian boom as prime minister.

While reams of column inches have been written about the man's ascent to the top, it is uncertain how he will adjust to life on the world stage. The success of Modi's Bharatiya Janata Party in the national elections will mean the West will now have to deal with Modi as an equal, but what can they expect from Modi's India?

His economic legacy in Gujurat stands out for its pro-business and pro-growth agenda. He surrounded himself with technocrats, pro-business leaders who aggressively promoted opportunities for entrepreneurs, small enterprises and foreign investors.

Confidence in Modi's business credentials is palpable. Investors are already counting on a Modi-led administration breathing new life into India's slowing economy. The country's state banks, which make up 75% of the banking industry, are planning to head to the markets for billions of dollars rather than relying on the government for funds.

Speaking to Reuters ahead of the election, chairman of the Syndicate Bank Sudhir Kumar Jain said the bank was looking to raise $720m, mostly in dollar bonds.

"If the government is positive and announces some policies which are positive and conducive for investment and growth, corporates will plan their expansion and all, which will result in credit demand."

As India seeks to bounce back from declining growth and shore up its banks, strong leadership and clear decisions are expected from the Modi administration. As his pro-growth campaign gained traction, foreign money to the tune of $5bn was ploughed in to Indian companies.

Markets soared to record highs this week, as the result of the exit-polls became clear. Investors are banking on Modi performing the economic miracles that he did in Gujurat on a national scale, but it should be remembered that his mandate on the national stage is somewhat weaker.

While the consensus says that foreign investment in India is set to soar, there may be a lull while the new government finds its feet.