Indian state polls modestly boost Modi's reform plan

Significance They represent a minor triumph for Prime Minister Narendra Modi's Bharatiya Janata Party (BJP), after several difficult months, and promise to restore political momentum to his government. Yet progress is still likely to be slow. Impacts Uttar Pradesh polls will test whether the BJP's electoral campaign can avoid communal polarisation and conflict. Infrastructure investment in Assam is likely to rise, advancing Indian ambitions to improve connectivity with South-east Asia. Ties with Bangladesh will suffer as the new Assam government delivers on promises made to anti-Muslim ethic groups.

Significance The ruling National Democratic Alliance (NDA), led by Prime Minister Narendra Modi’s Bharatiya Janata Party (BJP), has retained a parliamentary majority and the BJP has extended its single-party majority. During campaigning, Modi emphasised nationalist themes, ranging from Hindu nationalism to national security, while deflecting criticism over problems such as the country’s jobless growth. Impacts The BJP’s pledge to spend 100 trillion rupees (1.4 trillion dollars) on infrastructure will likely prompt a widening of the fiscal deficit. Leading BJP figures such as party President Amit Shah and Uttar Pradesh Chief Minister Yogi Adityanath may aim to succeed Modi in 2024. Rahul Gandhi will highly likely relinquish leadership of the main opposition Congress party.


Subject India's response to violence in Myanmar's Rakhine State. Significance India last month deployed additional troops along its border with Myanmar, as Myanmar’s military continues operations against the ethnic insurgent Arakan Army in Rakhine State. Meanwhile, Prime Minister Narendra Modi’s ‘Act East’ policy for greater engagement with South-east Asia features increased infrastructure investment in Myanmar, including in Rakhine. Impacts Myanmar’s military will intensify operations against the Arakan Army. The Arakan Army may align tactically with the Arakan Rohingya Salvation Army, but such a tie-up would not endure for long. Bangladesh could come to view the Arakan Army as a useful proxy to push back on Myanmar’s military for the Rohingya crisis.


Subject Politics in India's north-east. Significance In the forthcoming general election, 25 seats in the parliamentary lower house will be contested in the north-east. Four of the region's eight states have chief ministers from Prime Minister Narendra Modi's Bharatiya Janata Party (BJP) while the other four have ones representing parties aligned with the BJP. However, BJP policies aimed at appeasing certain ethnic communities have provoked protests across the area. Impacts Muslim Rohingya refugees in India will increasingly attempt to cross into Bangladesh, further damaging relations between Delhi and Dhaka. Delhi will encourage Tokyo to increase investment in India's north-east, hoping to push back on Beijing's ambitions in the region. Modi, if re-elected, will step up his 'Act East' policy, seeking enhanced connectivity between the north-east and South-east Asia.


Significance The National Democratic Alliance (NDA), led by Prime Minister Narendra Modi’s Bharatiya Janata Party (BJP), retained a majority in Assam and won in Puducherry. It fared less well elsewhere: the BJP failed to gain power in West Bengal, despite campaigning especially hard there. Impacts Violence in West Bengal involving rival supporters will likely continue for several more weeks. BJP strategists will now focus on the 2022 Uttar Pradesh election, determined to ensure the party holds power in that key state. Congress, India’s main opposition party, faces a deepening crisis of confidence after its underwhelming poll performance.


Subject Prospects for India to end-2017. Significance The expected economic scenario over the second half of 2017 is low inflation and a rebound of GDP growth from a slowdown in the first half. Following the triumph of his Bharatiya Janata Party (BJP) at the Uttar Pradesh state elections in March, Prime Minister Narendra Modi can expect a relatively quiet political season until year-end.


Subject Indian parties' outreach to young voters. Significance Last month, police in Lucknow, Uttar Pradesh (UP) state, clashed violently with crowds of student teachers protesting their poor job prospects. There have been dozens of youth demonstrations against joblessness across the country this year. The general election will likely occur in April or May next year when Prime Minister Narendra Modi’s Bharatiya Janata Party (BJP) will face a challenge from the main opposition Congress party and other national or state-based parties. Impacts Civil society critics will accuse the BJP of undermining academic freedoms in the country’s universities. Some university campuses could see outbreaks of violence around the time of the poll. While the BJP will highlight India’s robust growth figures in campaigning, opponents will criticise it for fostering jobless growth.


Significance Different states and union territories will go to the polls on different dates, with many voting in more than one phase. Prime Minister Narendra Modi’s Bharatiya Janata Party (BJP) faces a tough challenge from the main opposition Congress party and several regionally influential parties. Impacts Anti-Pakistan nationalism would favour the BJP but, unless there are further cross-border hostilities, it is unlikely to be a key factor. Outbreaks of religious or caste violence are most likely in Uttar Pradesh and Bihar states. The post-poll government will struggle to rein in the fiscal deficit, with both main parties’ campaign pledges straining budgetary prudence.


Significance Each of these states except Punjab has a government led by Prime Minister Narendra Modi’s Bharatiya Janata Party (BJP). Punjab is one of just three states with a chief minister that belongs to India’s main opposition Congress party. Impacts A poor showing by Congress would further reduce its leverage with other opposition parties in talks over forming a broad anti-Modi alliance. Victory in UP would enhance Chief Minister Yogi Adityanath’s national profile. Election campaigning will likely lead to a spike in COVID-19 cases.


Subject The outlook for Indian naval engagement with South-east Asian countries and ASEAN. Significance At the ASEAN summit in mid-November, India's Prime Minister Narendra Modi underlined India's 'Look East' policy, pledging to cultivate diplomatic, economic and security relationships with South-east Asia. One manifestation of Delhi's willingness to undertake a more strategic regional role is the Indian navy's growing portfolio of partnerships with South-east Asian navies. Amid concerns over China's maritime assertiveness, India's navy has been welcomed in the region as a security partner. Impacts India will avoid South-east Asian undertakings that may provoke China. Delhi will need to define 'Look East' policies concretely to convince South-east Asia fully of Indian strategic utility. Modi will expand bilateral naval exercises, humanitarian aid and counter-piracy/smuggling efforts in South-east Asia.


Subject E-commerce in India. Significance Following nationwide protests from small traders in late 2014, key sections of the Bharatiya Janata Party (BJP) government have demanded that Prime Minister Narendra Modi act against India's rapidly growing e-commerce platforms. Particular targets are the largest e-commerce players, mostly Indian, but including Amazon India, which have benefitted from large infusions of foreign capital and stand accused of side-stepping India's strict limits on foreign investment in multi-brand retail. Impacts Any improvement in transport and distribution infrastructure will boost e-commerce. Proliferation of mobile and banking facilities is key to expanding online retail. Small traders will oppose the expansion of e-commerce, causing greater political losses for the BJP than any other party.


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