Of freebies and economic revival: Why the assembly elections hold the key to India's economic roadmap

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Key Points

Outcomes in these elections will set the stage for the Lok Sabha polls early next year, where the Indian National Congress and the INDIA bloc look to mount a credible challenge to the Narendra Modi-led Bharatiya Janata Party (BJP) on the national stage...

For the national economy, the results of the elections in Chhattisgarh, Mizoram, Rajasthan, Telangana and Madhya Pradesh could be significant as economists are wary of the emergence of a weak coalition government come 2024...

Chief Election Commissioner Rajiv Kumar, while announcing the schedule for the five state assemblies, said that announcement of freebies by political parties comes with a 'tadka of populism' and wondered why no government remembers to make such announcements over 'five years' of their rule and only declare them a fortnight or month before elections...

With an eye on the general elections, the Modi government last week announced the extension of Indias free foodgrain programme by five years..

Nevertheless, economists believe that due to upcoming assembly elections in crucial states, followed by the Lok Sabha elections early next year, it will be challenging to restrain government spending, considering the promises that need to be made to voters..

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