India Votes for Continuity, Not Change

India Votes for Continuity, Not Change

India's ruling coalition, led by the Congress Party, surged to an unexpected victory in last week's elections. It no longer needs the Left Front (four Marxist parties) for survival, and so can go ahead with economic reforms earlier vetoed by the left. Yet its policy emphasis will be on continuity rather than radical change. A party re-elected after five years of almost 9% annual gross domestic product growth has no pressing reason to change its model.

Congress believes it won the election by focusing on the rural poor--raising support prices for crops, waiving repayment of bank loans by small farmers, guaranteeing 100 days work for rural laborers on government projects, improving rural infrastructure and providing massive subsidies for food and agricultural inputs.

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