While UPA Indian national election victory wasn't necessarily a surprise; the manner of it was. News of the clear and decisive win was met with a general sense of shock as the Indian business community, overseas commentators and Indian citizens took in the magnitude of victory.

Congress breakthrough

For the first time in recent history one single party - Indian National Congress - has a clear mandate to govern, freed of horse-trading and the threat of internal coalition bickering, India can look forward to a period of stability.

Capturing 262 of available 543 seats (increase of 43 seats) far exceeded expectation, in the process dealing a blow to BJP led NDA (loss of 23) and Third Front (loss of 67). Although still short of an overall majority, given their overall superiority, leaders expect little trouble gathering additional support.

Last five years

During last term UPA relied on left wing parties to establish majority rule, yet protectionist Communist parties stalled Congress plans, derailing further market reforms. Left wing interference - over India / US nuclear deal - led to UPA facing a vote of confidence in July 2008, which it narrowly won. This time, with left wing parties hit hard at the polls, their threat has evaporated

Reform

With a clear mandate and internal unity, UPA are likely to take brave steps at a time when India needs strong leadership and economic reform. Further retail reform is expected and more business sectors are likely to be opened, creating further FDI opportunities. In addition, the emergence of 38 year old Rahul Gandhi, - credited with attracted the youth vote and making key strategic campaign decisions - appears to provide Prime Minister Manmohan Singh with an heir apparent.

"Shutdown Monday" on the Sensex

Considering the state of the slowing Indian economy, India Inc hoped for a clear result, reports suggested India's business community wanted continuity and UPA returned to power. In the event they got their wish but the immediate response was unexpected. India's stock market jumped 17.3% triggering an internal system shutdown.

Reaction of international community

Foreign commentators were equally excited, Mark Runacres, head of British Business Group in India explained that there were three benefits, "First, stability is great. Secondly, the results show that quality of leadership and governance has been rewarded. Thirdly is the absence of the Left from the ruling coalition. The Communists in India, who are not business friendly, have really taken a beating at the polls."

Domestic reaction

Voter reaction was equally positive, India Insights contacted a number of voters for their reaction:

Rajeev Ramachandran, "It's good news for everyone. People have voted for stability and economic development."

Shankar Balan, " I think all in all, the Congress, if allowed an uninterrupted run for the next term, can make a big difference."

Ameet Singh, "The performance of the previous government was slothful at best, They were chained to, the art of making their coalition stay alive first, this time around things have changed."

Arun Mishra, "I feel it is good for Indian Economy in all respect."

Mahesh Murthy, "Amazement that one party can win an unprecedented commanding position."

Sanjay Sarma, "A stable government will ensure more reforms and increased investor confidence in India."

Getting it right

Sonia Gandhi, Chairwoman of UPA perhaps best sums up the victory and its significance, "Eventually the people of India know what's good for them and they always make the right choice."