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India’s Reforms Risk a Failure to Launch

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Difficulties faced in winning the farm vote in Gujarat made it harder for Modi's BJP party to win Modi's home state in recent elections. This could lead to a more cautious approach from the BJP government. Price supports and subsidies were an issue for cotton farmers in Gujarat, leading to the loss of seats for the BJP party in Saurashtra region of Gujarat. The BJP resisted measures to boost price supports, subsidies and debt forgiveness leading to the loss of farmers support.

Modi remains popular in the country yet the election shows corruption, difficult situation of farmers facing inflation and water issues, and voters willingness to shift support, could make the ruling party more cautious in taking steps after the introduction of GST unified tax system and monetization slowed growth to 5.7% by mid-2017.



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