Modi's Gujarat win doesn't mean he will rule India

SINGAPORE Sat Dec 22, 2012 6:01am IST

A supporter of the main opposition Bharatiya Janata Party (BJP) holds a poster featuring Narendra Modi during a jubilation ceremony outside the party office in Ahmedabad December 20, 2012. REUTERS/Amit Dave

A supporter of the main opposition Bharatiya Janata Party (BJP) holds a poster featuring Narendra Modi during a jubilation ceremony outside the party office in Ahmedabad December 20, 2012.

Credit: Reuters/Amit Dave

SINGAPORE (Reuters Breakingviews) - Narendra Modi's resounding election victory in Gujarat has made Indian businessmen optimistic. Many see his win, the third in a row, as a sign that the centre-right leader with a reputation for effective administration could be ruling the nation in 2014. But a chequered past, an autocratic personality and the peculiarities of India's coalition politics make Modi less than a shoo-in.

The result of 2014 polls could be dramatically different from what investors are hoping for. A real possibility is that smaller regional parties come together to forge a weak, purposeless centre-left government - just to keep Modi out.

Modi's ambition to rule India has undoubtedly received a boost: His centre-right Bharatiya Janata Party's winning tally in Gujarat, while falling just short of a two-thirds majority, was a big blow to Sonia Gandhi's Congress party.

The Congress, which has ruled India since BJP's shock defeat eight years ago, will most likely fight the next general election under the leadership of Sonia's 42-year-old son Rahul, who doesn't have a track record in governance. By contrast Modi, who is 62, has run Gujarat for 13 years, and even his detractors grudgingly admit that he hasn't done a bad job in attracting investments to the state, creating jobs and clearing supply-side bottlenecks, especially in power.

But the BJP is reluctant to nominate Modi as its next prime ministerial candidate because of an unproven charge against him of abetting an anti-Muslim pogrom in 2002. That means he won't be acceptable to coalition partners like Nitish Kumar, the chief minister of Bihar, for whom Muslim votes are important. If the coalition breaks up, a non-Congress, non-BJP "third front" of regional parties could emerge. Supported by the communists, the third front could undermine both the BJP and the Congress.

Modi's Gujarat campaign was all about his achievements and his promises. His supporters believe that, as prime minister, he could craft pragmatic, pro-business policies and get them implemented by curmudgeonly bureaucrats. But in national politics, a personality cult is a liability. Modi's autocratic style could render him unsuitable for managing a large, unwieldy coalition, which is what the next government will most likely once again be.

CONTEXT NEWS

- Narendra Modi, the 62-year-old chief minister of Gujarat, snatched his third straight victory in elections for the lower house of the state assembly. Modi's Bharatiya Janata Party won 115 seats in the 182-seat lawmaking body. The main opposition, Sonia Gandhi's Congress party, came in second with 61 seats.

(Editing by Peter Thal Larsen and Katrina Hamlin)

(The author is a Reuters Breakingviews columnist. The opinions expressed are his own)

Photo

After wave of QE, onus shifts to leaders to boost economy

DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.

Barack Obama in India

Reuters Showcase

Coal Mining

Coal Mining

India to open coal to commercial mining firms soon, minister says  Full Article 

RBI Loan Rules

RBI Loan Rules

RBI relaxes overseas loan recast rules   Full Article 

E-commerce Firms

E-commerce Firms

Amazon, e-commerce rivals fuel commercial property boom in India  Full Article 

Growth Forecasts

Growth Forecasts

Indian economic growth forecasts pegged back, despite rate cuts: Reuters Poll.  Full Article 

Uber is Back

Uber is Back

Uber back in Delhi; govt says must await approval.  Full Article 

Markets at Record

Markets at Record

Sensex rises to record after ECB stimulus programme.  Full Article 

Pharma Sector

Pharma Sector

Ipca Labs hit by FDA ban on plant for standard violations.  Full Article | Related Story 

Forex Reserves

Forex Reserves

India FX reserves at record high as RBI fortifies defences  Full Article 

QE for Euro Zone

QE for Euro Zone

ECB launches 1 trillion euro rescue plan to revive euro economy.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage