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Elections
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India Politics: BJP retains Gujarat; adds Himachal Pradesh to its kitty
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18-Dec-2017
In the first major state elections post GST implementation, the BJP, the ruling party at the center, has won both Gujarat and Himachal Pradesh (HP) state elections with a comfortable majority. Its vote share in Gujarat has gone up from 48.3% in 2012 to49.1% in 2017. In Himachal Pradesh, the BJP has won close to 2/3rd majority, while in Gujarat, it has won ~55% seats. This is the BJP's sixth consecutive victory in Gujarat state elections and its first since Mr Narendra Modi became Prime Minister in May2014, belying any impact of anti-incumbency after 22 years of its uninterrupted reign.
Winning UP and Gujarat right after big structural reforms like demonetization and GST, which have created short-term disruption, reaffirms Mr Modi's popularity and augurs well from the reforms perspective, in our view. This is positive from a policy viewpoint as one steps into 2018, which has a very busy political calendar, with important state elections- Karnataka, Rajasthan, Madhya Pradesh and Chattisgarh.
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