Cong recovers as economics key issues in India local polls |
Voters unhappy with the prolonged economic slowdown and agrarian distress delivered an alarming wake-up call to the Bharatiya Janata Party. The BJP failed to win a majority on its own in Maharashtra and fell short by six seats in Haryana. While it is set to form the government with alliance partner Shiv Sena in Maharashtra, it will have to scout for a new ally in Haryana. Barely five months after the National Democratic Alliance (NDA) stormed back to power with a thumping majority in the general elections, it was struggling to form the government in Haryana and ceded ground to Sharad Pawar`s Nationalist Congress Party in Maharashtra. The setback in the assembly elections comes against the backdrop of a rising risk of contagion in the Indian financial sector. For many economists and political pundits, the tea leaves point to the intersection of politics and economic policy as the overriding factor behind the disappointing results for a party that won 303 Lok Sabha seats in May.
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