- Madhya Pradesh polls verdict: Show of unity came a little too late for CongressShivraj Singh Chouhan's son of the soil image proves to be winner, againAs BJP looks set to retain MP, Shivraj Singh Chouhan thanks people, partyStock markets to see strong up move this week on Bharatiya Janata Party win: Experts
Apart from the stunning defeat of the Congress party in 3 of the 4 states, the spectacular debut of the Aam Aadmi Party (AAP) that won 28 of Delhis 70 assembly seats will force political parties to relook their future strategies. While barriers to entry remain high in Indian politics, a rank newcomer doing so well should get the BJP especially, given its urban bias, to think of the consequences of an AAP extending to more urban centres. The other big lessons of the mini elections are that economic governance is at a premium and voters cant be won over by freebies alone. With over R5,000 crore from Cairn India each year by way of royalties from Barmer oil as compared to R100 crore five years ago, Ashok Gehlots government had a lot more to spend on freebies, but lost decisively. Though stock markets will project yesterdays assembly results on to next years electionsBJP holds just 28 of the 72 Lok Sabha seats in these stateskeep in mind the BJP has swept these states before in the assemblies and then lost them in the national elections; also, how well the BJP does in the national elections largely depends on how it does in Bihar and Uttar Pradesh.
While anti-incumbency and corruption perception were big factors, by and large parties that delivered on growth were voted back to power. As against the national average of 5% in FY13, Madhya Pradeshs (MP) GDP growth was more than double at 10% and, while not as impressive, Chhattisgarh was 8.6%. Rajasthans data is available only for FY12 and for that year, it grew at less than the national averageMP, by contrast, grew at 11.8% versus the national 6.2% and Chhattisgarh grew at 8.1%. At over 9% for several years, Delhi grew faster than the national average, but given the apathy towards the central government also rubbed off on the Delhi government, the anti-incumbency was too strong to counter. Even more revealing was the agriculture performance which matters more for jobs creation. While agriculture grew by 1.7% at the national level in FY13, it grew 14.3% in Madhya Pradesh and 5.3% in Chhattisgarh. Related to this is the issue of freebies. While chawal baba Raman Singh in Chhattisgarh is the progenitor of the Food Security Act with his heavily subsidised foodgrain, voters plumped for him in large numbers but deserted Ashok Gehlot who also showered freebies