India Economics Comment

The BJP’s strong victory in the populous state of Uttar Pradesh marks PrimeMinister Modi’s continued popularity. With improving performance at stateelections, the BJP’s seat share in the upper house of parliament is rising, althoughonly gradually. Prospects of further reforms over the next year are encouraging,given one, today’s positive referendum on Modi’s political standing; two, the risingcohort of BJP state Chief Ministers; and three, the gradual improvement in upperhouse seat share. Reforms spanning better implementation (e.g. disinvestment,FDI rules and subsidy reforms), focus on ongoing government initiatives (e.g.

    improving the GST and banking sector reforms), and new bills (e.g. land andlabour) can be expected, in decreasing order of ease.