Modi’s party to lose key state votes
NEW DELHI: India’s ruling party is set to lose power in at least two major states and possibly a third, dealing another political blow to Prime Minister Narendra Modi shortly after the central bank governor abruptly resigned.
Early trends from a vote count yesterday showed the main opposition Congress party crossing the majority mark to wrest power from Mr Modi’s Bharatiya Janata Party (BJP) in the key states of Rajasthan and Chhattisgarh, according to news channel India Today TV. Madhya Pradesh was too close to call, with the lead switching between both major parties.
A poor showing for the BJP could make Mr Modi look more vulnerable ahead of the 2019 federal poll due by May. Opposition victories in these states could boost the Congress party’s momentum and help it to exploit growing disenchantment over unemployment and rising social tensions.
Indian financial markets were thrown into turmoil yesterday after Urjit Patel stepped down as governor of the Reserve Bank of India following clashes with the government. The rupee weakened 1.3% against the dollar in early trading in Mumbai, set for the steepest two-day drop since 2013. Yields on 10-year sovereign bonds rose nine basis points and the S&P BSE Sensex gauge of stocks slid 1%.
Six major exit polls released on Friday had showed the BJP could potentially lose in Madhya Pradesh and Chhattisgarh, both of which the party has ruled for three straight terms.
At least four exit polls predicted the Congress would oust the BJP in Rajasthan, the country’s largest state.
“Given the anticipated state election results, Modi will probably have to rely more on, and be more constrained by, a coalition in his second term,” said Eurasia Group senior analyst Sasha Riser-Kositsky, who said he still predicts Mr Modi will get re-elected in 2019.
Today’s Chanakya, which predicted Mr Modi’s landslide win in the 2014 general elections, expected Congress to win in the three main states: Madhya Pradesh, Chhattisgarh and Rajasthan.
Since seizing national power in 2014, Mr Modi’s party has won numerous regional victories, bringing the total number of Indian states under its control to 19 out of 29.
Congress victories would provide a morale boost to a party that has struggled in recent years after long dominating Indian politics.
It may also help them win over allies to form a united opposition front to defeat Mr Modi next year.