Spain – India
The Bharatiya Janata Party (BJP, Indian People's Party, Hindu nationalist) of Indian Prime Minister Narendra Modri has swept the elections in Uttar Pradesh, the most populous state.
from India.
With 40% of the vote in the first and only round, the BJP has secured three-quarters of the 403 seats at stake. This is the best result for a party in this type of election in forty years. In the other five states holding elections, the BJP won in Uttarakhand and will be able to govern in coalition in Goa and Manipur. Modi's victory has exceeded his own expectations, and he will have to facilitate governance, given that these results create a more favorable Upper House. Voters do not appear to have held him accountable for the withdrawal of 500 and 1.000 rupee notes from circulation, which has generated some economic chaos. One of the reasons for the Prime Minister's success has been the promotion of candidates from lower castes on his electoral lists, something that was not common in Indian politics. However, the growing influence of a Hindu nationalist party is worrying the country's religious minorities, particularly Muslims, who fear increased intolerance.
• Outcome of Demonetization: The period of liquid currency rationing that resulted from the invalidation of 500 and 1.000 rupee notes last November has come to an end. The supply of legal tender in circulation has increased to $158 billion, mostly in newly created 500 and 2.000 rupee notes. At its worst, liquidity plummeted from $253 billion to $35 billion. Indian citizens could only continue using the invalidated notes to purchase fuel vouchers, airline and train tickets, or to pay taxes and other government fees. Otherwise, they had no choice but to deposit them into their bank accounts to prevent them from losing their value on January 1. The window closed on December 23. The cash shortage forced banks to impose limits on withdrawals. The measure was intended to encourage citizens to use digital payment methods, thereby facilitating tax control of transactions (one of the objectives was to combat the black market). Indeed, digital payments increased sharply, peaking in December. Since then, they have been plummeting, both in the number of transactions and in value, although their usage remains above pre-demonetization levels. Even with the decline in bank deposits and digital payments, observers of the Indian economy insist that the measure will have a positive long-term impact, bringing hundreds of millions of citizens into the 21st century in terms of payment systems in just a few weeks. However, the population has been accustomed to receiving cash for decades, and the trend appears to be a return to the predominance of cash payments, although the progress made in recent months has been truly remarkable.
Source: CESCE
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