Gujarat Assembly Elections 2017: China Closely Monitoring BJP’s Performance to Judge People’s Attitude Towards Narendra Modi’s Economic Reforms
New Delhi, Dec 15: Observers in China are closely watching developments related to the Gujarat Assembly elections 2017 to understand people’s attitude toward Prime Minister Narendra Modi’s economic reforms, according to the Chinese state media. An article in the state-run Global Times said victory of Bharatiya Janata Party (BJP) in Gujarat polls will have the major impact on India’s economic reforms, eventually, having an effect on China’s companies as well. The article states that India’s economic reforms are “an issue of deep concern to China because of its increasing economic interaction with India”.
“The outlook for India’s economic reforms is deeply related to a good number of Chinese companies doing business in India such as Xiaomi and OPPO. If the BJP wins an overwhelming victory in Gujarat, the Modi administration may take more radical approaches to economic reform. China’s companies will feel the changes no later than India’s,” said the Global Times article. It further said the loss of BJP in Gujarat Assembly elections will be seen by China as “the biggest setback” for the economic reforms initiated by the Modi government.
“Modi’s reforms have drawn fierce opposition from other parties and some economists, but those most qualified to evaluate the ‘Gujarat model’ are the people of Gujarat. Whatever the election result is, it will have a great impact on the public opinion environment for the implementation of the rest of Modi’s reform agenda,” the article noted. It also said a slight decline in BJP’s vote share will be seen as a warning for the Modi government.
Hence, China should closely monitor the Gujarat election results, the article said. “Companies doing business in India should prepare for possible changes in economic policy over the long run and possible volatility in India’s financial markets next week after the results are announced,” it said.
All exit polls on Thursday predicted a comfortable victory for the BJP in Gujarat and Himachal Pradesh. Almost all exit polls predicted more than 100 seats for the BJP in Gujarat, with one giving 135 seats to the saffron party.