Decoding resounding BJP victory

[email protected] (A K Verma)
March 12, 2017

Mar 12: The Bhartiya Janata Party (BJP) registered a landslide victory in Uttar Pradesh (UP) and Uttarakhand, capturing significant space in Manipur where it had no presence while Goa remains close. But, as expected, the Akali Dal-BJP alliance lost Punjab where it had already served two terms and faced anti-incumbency owing to drug menace, arms traffic and arbitrary police and general administration.

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In UP, the BJP's resounding win of 325 seats with 41% votes with allies, Apna Dal (AD) and Suheldev Bharatiya Samaj Party (SBSP), came as a surprise to all. It far surpassed the party's Mission-265 target and was really Herculean as compared to 2012 Assembly polls when it secured 47 seats and 15% votes. Thus, it won 278 more seats and 26% more votes as compared to 2012. How could the BJP do this?

Constituency transformation: The BJP fundamentally transformed its constituency. The party had been touted as upper caste-urban-middle class-traders party, a constituency that comprises of just 19-20% of electorate. It tried to go for 'sabka saath, sabka vikas,' a catchphrase for inclusive politics. The party included more backward, most backward and Ati-Dalit sections hitherto excluded from party constituency.

According to the Centre for the Study of Developing Societies (CSDS) data, a massive 32% more backwards, 37% most-backwards and 21% Ati-Dalits have shifted to the BJP since 2012. There appeared to be a democratic upsurge in UP that gave a massive win to the BJP.

Rural connect: Prime Minister Narendra Modi established a rapport with the rural people. Congress vice-president Rahul Gandhi used to mock him as heading a 'suit-boot ki sarkaar' and playing to the rich. But Modi bounced back with a massive rural push as he went for neem-coating of urea making it unfit for industrial use, introduced soil health card, provided farmers security by implementing the Fasal Bima Yojna (crop insurance), launched village toilets scheme and provided free LPG to village women under the Ujjwala scheme.

Further, during campaign speeches, he assured villagers that he would personally guarantee that the new BJP government in UP waived agricultural loans of small and marginal farmers in its first meeting and purchase their agricultural produce at minimum support price. What else could the farmers desire? That is the reason why 32% rural people voted BJP as against 14% in 2012.

Robust social engineering: To capture the largest social segment in UP — the OBCs — the BJP roped them into the leadership structure and offered them a large number of tickets in this Assembly polls. The non-Yadav OBCs in UP, called more-backwards and most-backwards, were not aligned to any particular party.

The BJP appointed Keshav Prasad Maurya from the most-backward as its state president and Anupriya Patel of Apna Dal, representing more-backwards, in the Modi cabinet. It also gave them 50% share in party tickets. This marginalised community was excited at getting a political space greater than their share in population. That positively impacted the BJP's victory in all constituencies.

Many failed to pay attention to the two marginal parties with which the BJP had alliance in UP – AD and SBSP — and calculate their electoral impact. Because of AD alliance, more-backwards, especially the Kurmis, massively shifted to the BJP. The SBSP is a party of Rajbhars, the people of tribal origin and wrongly placed in the most-backward category. They had polled five lakh votes in the contested constituencies in 2012 Assembly polls and their average comes to about 9,000 votes per contested constituency. That also made substantial difference to the BJP as add-on votes.

Policy initiatives: The BJP has also taken several policy initiatives in the domain of social security, economy and foreign policy. Modi's growing international stature, tough and fearless stand against Pakistan, and several bilateral and multilateral international collaborations beneficial for the country have not gone unnoticed by the people. His several schemes like Atal Pension Yojna, Jan Dhan Yojna, direct transfer of subsidy to the bank accounts of poor, Pradhaan Mantri Grameen Awas Yojna etc have greatly excited the people.

He also initiated schemes to tackle unemployment among youth through youth entrepreneurship in the form of Make in India, startup schemes, skill development etc. The youth of UP was unhappy because of the casteism in appointments and greatly expected the BJP government to undo that aberration.

Mayawati's Muslim outreach: There was much hype about BSP supremo Mayawati's Dalit-Muslim social engineering replacing her earlier Dalit-Brahmin social engineering of the 2007 fame. But, the BSP's poor performance demonstrates its complete failure. Mayawati did not understand that such social coalitions are not mechanical processes that you terminate at will and go for another. These experiments take time and should be not only a matter of political convenience but must also reflect in the coming together of the two communities at grassroots.

Secondly, Maya¬wati lost her upper caste votes after the infamous Dayashankar Singh (BJP) episode (he called Mayawati a prostitute), following which Naseemuddin (BSP) made vulgar remarks about the wife and daughter of Dayashankar. It not only pushed Thakurs but the entire upper caste, including Brahmins, away from Mayawati and that is clearly reflected in the CSDS data. Thirdly, Maya¬wati also lost Dalit votes, especially non-Jatavs Pasi, Valmiki, Kori, Khatik etc as she had been unfair to them.

SP-Cong alliance: The SP-Congress alliance was a disaster for both parties. It was formed on the premise of transferability of votes to each other on the Bihar model but did not materialise on ground. It may have been just a political experiment for a Congress revival as the party had no stakes in UP. For Akhilesh, however, it turned out to be a very unwise decision because he might have managed near majority on his own owing to his clean and development-centric image.

The alliance was suicidal for the Congress because it took a big risk not worthy of a national party. One, by ceding 298 seats to the SP, it literally offered its Muslim vote share on a platter in those constituencies, a mistake the party committed in 1996 when it went for an alliance with the BSP and offered its Dalit votes to the party. Secondly, the Congress did not think big for the 2019 Lok Sabha elections. This Assembly poll was a chance to galvanise its party apparatus and cadre for the coming LS poll. By not contesting in 298 constituencies, the Congress' organisational apparatus might disintegrate beyond repair.

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Agencies
July 6,2020

The Covid-19 pandemic has made an unprecedented impact on the Indian businesses, particularly small and medium enterprises (SMEs) and startups. According to a joint survey by FICCI and Indian Angel Network (IAN), the pandemic has hit the businesses of around 70% startups.

With uncertainty in the business environment and an unexpected shift in priorities of the government as well as corporates, many startups are struggling to survive, it says.

In a nationwide survey on the 'Impact of Covid-19 on Indian Startups' involving 250 startups, 70% participants said their businesses had been impacted by Covid-19 and around 12% had shut operations.

The survey shows only 22% startups have cash reserves to meet the fixed cost expenses over the next 3-6 months, and 68% are reducing operational and administrative expenses.

Around 30% of the companies said they would retrench employees if the lockdown was extended too long. The 43% startups have already started 20-40% salary cuts over April-June.

Over 33% startups said investors had put the investment decision on hold and 10% said the deals had been scrapped. Only 8% startups had received funds as per the deals signed before Covid-19 outbreak, the survey revealed.

The reduced funding has forced startups to put a hold on business development and manufacturing activities, which has resulted in loss of projected orders.

The survey highlights the need of an urgent relief package for startups, including possible purchase orders from the government, tax relief and swifter tax refunds, and immediate fiscal support measures, including grants, soft loans and payroll grants.

Besides 250 startups, 61 incubators and investors also participated in the survey.

While 96% of investors accepted that their investments in startups had been impacted by Covid-19, 92% said their investments in startups would continue to be low over the next six months.

Around 59% investors said they would prefer to work with the existing portfolio firms in the coming months. Only 41% said they would consider new deals.

"A comparison of priority investment sectors before and during Covid-19 shows 35% investors are now looking at investments in healthcare startups, followed by EdTech, AI/Deep Tech, FinTech and Agri," said the survey.

Around 44% incubators surveyed said their day-to-day operations had been considerably hit by Covid-19. Most incubators are now supporting their portfolio firms by providing them virtual platforms to interact with mentors, investors and industries.

Dilip Chenoy, FICCI Secretary General, said, "The startup sector is stressed for survival at the moment. The investment sentiment is also subdued and is expected to remain so in the coming months. Lack of working capital and cash flows may lead to major layoffs over the next 3-6 months."

Indian startups needed an enabling ecosystem and flow of funds to continue operations, the survey said.

Padmaja Ruparel, President, Indian Angel Network & Co-Chair of FICCI Startup Committee, said, "In these uncertain times, as investors, we must play an important role to provide the Indian startups funding, mentoring and hand-holding support to stay afloat and come out at the other end of this crisis."

To that end, IAN recently announced a debt fund to help IAN portfolio companies raise working capital and ensure business continuity by partnering with debt providers.

This must be replicated on a wider scale, so a larger number of startups are provided the capital support to make it during these tough times, Ruparel said.

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Agencies
March 14,2020

New Delhi, Mar 14: Excise duty on petrol and diesel was on Saturday hiked by ₹3 per litre as the government looked to mop up gains arising from fall in international oil prices.

Special excise duty on petrol was hiked by ₹2 to ₹8 per litre incase of petrol and to Rs 4 incase of diesel, an official notification said.

Additionally, road cess on petrol was raised by ₹1 per litre each on petrol and diesel to ₹10.

The increase in excise duty would in normal course result in a hike in petrol and diesel prices but most of it would be adjusted against the fall in rates that would have necessitated because of slump in international oil prices.

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Agencies
February 17,2020

Google on Monday announced it is gradually winding down its free public Wi-Fi Station programme currently available at over 400 railway stations in India, and will work with the Indian Railways and Railtel Corporation to help them with existing sites so they can remain useful resources for people.

Google launched its Station initiative in India in 2015 to bring fast, free public Wi-Fi to over 400 of the busiest railway stations in the country by mid-2020.

"We crossed that number by June 2018 and implemented Station in thousands of other locations around the country in partnership with telecommunications companies, ISPs and local authorities," Caesar Sengupta, Vice President, Payments and Next Billion Users, Google, said in a statement.

"Over time, partners in other countries asked for Station too and we responded accordingly. We're grateful for these partnerships, especially with the Indian Railways and the Government of India, that helped us serve millions of users over the last few years," he added.

According to Google, the decision to shut Station has been taken keeping the affordable mobile data plans and mobile connectivity in mind that is improving globally including in India.

"India, specifically now has among the cheapest mobile data per GB in the world, with mobile data prices having reduced by 95 per cent in the last 5 years, as per TRAI in 2019," said Sengupta.

The Indian users consume close to 10GB of data, each month, on average, according to reports.

"Our commitment to supporting the next billion users remains stronger than ever, from continuing our efforts to make the internet work for more people and building more relevant and helpful apps and services," Sengupta noted.

Global networking giant Cisco last year teamed up with Google to roll out free, high-speed public Wi-Fi access globally, starting with India.

The first pilot under the partnership was rolled out at 35 locations in Bengaluru.

Sengupta said that in addition to the changed context, the challenge of varying technical requirements and infrastructure among our partners across countries has also made it difficult for Station to scale and be sustainable, especially for our partners.

"And when we evaluate where we can truly make an impact in the future, we see greater need and bigger opportunities in building products and features tailored to work better for the next billion user markets," he said.

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