By Jim Walker – Wealthy Nations (Singapore) –
The Indian state elections delivered surprising results, and for the first time since 2002, Indian Prime Minister Narendra Modi’s ruling Bharatiya Janata Party (or the BJP) swept to power in Uttar Pradesh, wining a landslide victory, taking 312 – or more than 75% – of the 403 seats up for grabs.
This marked the single largest majority for any party in this state since 1980. The state election results are a ringing endorsement of Mr. Modi and his government.
Mr. Modi is changing the India game even though investors, foreign in particular, have been disappointed (a) by the failure to deliver on the Land Acquisition Bill, (b) that the GST Bill when it finally came through was a much diluted version of what was expected and (c) that the doors to FDI have not been thrown open.
Certainly the 8 November demonetisation was a rude shock.
There have been many theories floating around since as to the motivation behind it including an attempt to thwart plans by Pakistan to dump a huge amount of counterfeit notes in the country and to damage the funding channels of the BJP’s political opposition.
There is no doubt though that demonetisation has brought economic hardship and has hit hard India’s cash-dependent rural sector and small businesses.