Impact of General Elections on Indian Economy
Keywords:
Political Budget, Business Cycle, Business Model, PBC Model, Indian Elections, Economy and ElectionsAbstract
India is the world’s largest democratic country with around 900 million voters, 8 national parties, 57 state parties, and 2,764 unrecognised parties, 4,123 seats in state legislative assemblies, and 543 representatives in Parliament. This research paper will discuss the impact of general elections on different economic indicators such as inflation, exchange rates, stocks, and deficits. Analysing electoral and economic data spanning from 1970 to 2019, it can be concluded that there is no permanent, and predetermined pattern in these economic variables before and after the election. From the late 1980s to 1999, the political landscape in India was characterised by instability, marked by rare occurrences of governments completing their full five-year terms. The Indian public goes to the ballot almost every year to elect their representatives at the - national, state and regional level. The high frequency of elections coupled with various other factors (like international situations at that time) might be the reason that we don’t find political business cycles or political budget cycles in India.
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