The result of India’s presidential election is due to be announced later today. It won’t have direct implications for the economy since the role of president is largely ceremonial. But the result could strengthen the ruling BJP’s position in future legislative elections. The BJP candidate, Ram Nath Kovind, is the clear front-runner. Mr Kovind is a prominent member of India’s large Dalit (formerly “untouchable”) community, and the party hopes that his election could draw many of them to the BJP ahead of the next general election in 2019. With Prime Minister Modi’s party performing well in recent state elections, this suggests he should remain in a strong position to push through legislative changes for some time yet. The main constraint on policy action would then remain the appetite of Mr Modi to pursue measures such as labour market reform that, while positive for the long-run outlook, could be unpopular.
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