02 September 2019

Economic Reforms, Welfare Schemes & Inflation: How To Win Elections In India

HOW TO WIN ELECTIONS IN INDIA

1991–1996: P V Narasimha Rao carried out economic reforms – and lost the election.
1998–2004: Atal Bihari Vajpayee carried out economic reforms – and lost the election.
Lesson #1: Economic reforms don't win the election.

2004–2009: Sonia Gandhi did not carry out any economic reforms. Instead she carried out welfare schemes – and won the election.
Lesson #2: Welfare schemes win the election.

2009–2014: Sonia Gandhi increased her welfare schemes. But this increased the fiscal deficit – which increased inflation. She lost the election.
Lesson #3: High inflation loses the election.

2014–2019: Narendra Modi learnt all the 3 lessons. So he
1. Carried out some economic reforms
2. Carried out many welfare schemes
3. Controlled inflation – by controlling the fiscal deficit
He won the election.

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