Of the two critical allies of the BJP in the NDA, Chandrababu Naidu has always been inclined towards economic liberalisation and reform. In fact, much of the boost in Andhra Pradesh’s fortunes took place during his stint as CM. He also, like PM Modi, believes that infrastructural development is crucial to economic growth.
On the other hand, Nitish Kumar is constrained by the caste-oriented politics of Bihar and would like government policy to be wrapped in ‘socialist’ jargon. He does realise, however, that the state’s economy needs a major boost if it is to come out of what was originally described as ‘BIMARU’ status. The state is at the money-order economy level and needs to prepare itself for next-generation transformation. If anybody knows how it can be done it is Modi. Going by the manner in which the people of Bihar have voted, they have realised this too.
The reduced number of Lok Sabha seats for the BJP will have created doubts among other countries with regard to foreign and economic policies. One of the first priorities for Modi will be to reassure the world on these concerns. India today plays a major role in maintaining a global security balance and is among the few countries that has good relations with almost all others. It is committed to cooperating with other major powers in containing China’s hegemonic intentions. Seeing the performance of the Indian economy and increase in purchasing power of the burgeoning middle class, almost all the world’s major companies are wanting to shift here. They need reassurance that the newly packaged socialism proposed by India’s opposition does not queer the pitch.
Another concern is that the increased clout of the caste-based alliance in UP could make investors think twice about setting up base there. All the hard work put in by CM Yogi to establish industrial hubs and corridors, rationalise procedures, will go down the drain. Some of the mega companies might even change their mind about not just investing in UP, but India altogether. The concerns could be assuaged by providing opportunities in other states – like Andhra Pradesh and Uttarakhand – but also by working on rescuing UP’s image.
Products are marketed by promoting an image. The image of India as a confident, powerful and growing power has taken a dent. This will require a makeover if the economy is to maintain the momentum it has had thus far. The vitality of its democracy could be a major selling point, thereby making the best of what has, after all, been a bruising battle.
