After BJP-led NDA returned to power with a massive majority in the Lok Sabha elections, Shankar Sharma, vice-chairman and joint managing director at First Global, said Narendra Modi government can do 'brutal' reforms in the second term to take on China in the growth.
In an interview to CNBC-TV18, Sharma said, India has been an outperformer for two years relative to global markets and some catch-up was expected after the Lok Sabah verdict.
He said, "If you compare India to Brazil or Russia, the country has been a little bit of a disappointment. This little bit of catch up was already expected after the Lok Sabha verdict and it has happened. I do not want to speculate as to what happens in terms of relative outperformance that we have seen in the last few days whether it is sustainable or not. In an election of this kind usually, the moves will be fairly short-lived. Of course, there was an exception in 2004 and 2009."
"This back to back majority mandate have told us one thing that, India is now almost 50 percent China in terms of the continuity of the management of the economy. It is not there yet as there are going to be elections every five years. But like China, you have a very strong or at least a semi-permanent kind of government at the centre," he added.