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The importance of state elections

The raft of state elections currently taking place in India is likely to have an important bearing on economic policy at the local level. But more significant, the outcome of the state elections – in particular the vote in Uttar Pradesh – could be crucial in determining whether Prime Minister Modi’s BJP will be able to gain control of the upper house of parliament, the Rajya Sabha, which on several occasions has delayed or blocked the passage of economic reforms at the national level. While victory in the general election in 2014 delivered control of the Lok Sabha to the BJP, it does not hold a majority in the Rajya Sabha. Even accounting for coalitions, the BJP-led National Democratic Alliance (NDA) only controls around one third of the Rajya Sabha.

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