Senior Columnist Ashok Malik explains how Assembly elections in five states of India will impact growth and investments in the country.
How will this round of elections in Uttar Pradesh, Punjab, Uttarakhand, Goa and Manipur affect economic reforms?
This is the last round of elections before the rollout of the Goods and Servce Tax (GST). A good performance by the BJP is sine qua non for the smooth rollout of this reform, which, arguably is the most import tax reform ever undertaken in India.
On the other hand, a poor performance by the BJP will embolden the Opposition to close ranks and put roadblocks in the path of GST. Coming to the individual states, the results in UP will be the most important. If the BJP does well, it will indicate that the BJP is holding on to its performance in 2014 (when it won 71 out of 80 seats and 2 seats went to its ally Apna Dal).