Recent state elections in India have seen Bharatiya Janta party (BJP), the party of prime minister Narendra Modi, win control and put Modi on track for re-election in two years.
This weekend, BJP won control of India’s most influential state, Uttar Pradesh, with an unexpectedly large margin.
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The BJP won 311 seats out of a total 403, which was enough to form a majority in the north Indianan state.
Around 80 percent of the country is now residing in states governed by BJP.
BJP’s president, Amit Shah, said at a party conference that this win was the biggest in Uttar Pradesh in the country’s modern history. Celebrations took place outside the party’s headquarters in Delhi, with supporters chanting Modi’s name.
Gratitude to the people of India for the continued faith, support and affection for the BJP. This is very humbling & overwhelming.
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By GlobalData— Narendra Modi (@narendramodi) March 11, 2017
The win in Uttar Pradesh demonstrates support for the prime minister and his demonetisation policy that came into force in November last year.
In an attempt to crackdown on corruption and counterfeit currency, two of the country’s largest Rupee banknotes became illegal tender overnight. The notes, INR500 ($7.50) and INR1,000 made up around 86 percent of the cash in circulation and equivalent to 11 percent of GDP.
All limits on bank cash withdrawals ended today, as the five-month policy comes full circle. The Reserve Bank of India (RBI) announced last month that the weekly withdrawal limit would be raised from Rs 24,000 to Rs 50,000 from February 20, with all ATM withdrawals set to end today.
The announcement was made by RBI’s deputy governor R Ghandi following the bank’s latest monetary policy review announcement in February when it was revealed that it would keep interest rates unchanged at 6.25 percent while it awaits the full impact of demonetisation.
The country’s minister of state for petroleum and natural gas, Dharmendra Pradhan, has said India’s economy will achieve an eight percent growth, in spite of the new policy.
When speaking at the 2017 Massachusetts Institute of Technology energy conference in Boston earlier this month, Pradhan said India will exceed seven percent overall growth rate this year and will achieve eight percent in 2018.
