It seems China is watching the Gujarat polls because they see it as a “litmus test” for Indian voters’ attitude toward Prime Minister Narendra Modi’s reform agenda”, reported Chinese state media.
India’s economic reforms are “an issue of deep concern to China because of its increasing economic interaction with India”, said an article in the state-run Global Times. And any changes in India’s economic reforms will be felt almost immediately by China, it added.
“The outlook for India’s financial reforms is deeply similar to a fantastic amount of Chinese businesses accomplishing business in India this kind of as Xiaomi and OPPO. If the BJP wins an frustrating victory in Gujarat, the Modi administration may possibly take more radical techniques to financial reform. China’s businesses will sense the improvements no later on than India’s,” reported the World Moments report.
“Modi’s reforms have drawn fierce opposition from other parties and some economists, but those most qualified to evaluate the ‘Gujarat model’ are the people of Gujarat. Whatever the election result is, it will have a great impact on the public opinion environment for the implementation of the rest of Modi’s reform agenda,” said the article.
A loss for Modi’s BJP in Gujarat will be seen by China as “the biggest setback yet” for the economic reforms initiated by the government, said the article.
What’s more, if the BJP wins but loses vote share, that too is a red flag, said Global Times.
“Even if the BJP wins the election but loses a chunk of its hefty majority in the state, the prospects for India’s reforms may be clouded. Growing market fears of a possible setback for the BJP in Gujarat reflect a flaw in India’s economic reforms: People doubt that the reforms can bring enough benefits to the country’s small businesses and ordinary people. The government must find a way to make the reforms gain public support,” the article said.
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