Cabinet Approval Sparks Debate on Political and Economic Benefits

The Indian cabinet has given the green light to the concept of “One Nation, One Election,” igniting discussions on its potential political and economic advantages. This initiative is anticipated to streamline electoral processes and could lead to significant savings.

Economic Benefits: Projected GDP Growth

Experts predict that synchronizing central and state elections could increase GDP by approximately 1.5%. This boost is attributed to the ability of governments to focus on developmental work for at least four and a half years, as opposed to the current scenario where frequent elections and the model code of conduct hinder progress.

Impact on Development and Inflation

Research indicates that simultaneous elections can enhance economic growth while reducing inflation rates. The study compared economic indicators one to two years before and after elections, revealing:

A notable increase in development rates.

A reduction in inflation due to fewer disruptions in governance.

The Disruption of Frequent Elections

The study highlights the adverse effects of frequent elections on decision-making processes. The delays in project completions and the slowing down of developmental initiatives lead to inefficiencies. Since 1952, India has averaged six elections per year, and including local elections inflates this number significantly.

Case Study: Tamil Nadu’s Experience

The research draws parallels with Tamil Nadu, where simultaneous elections in 1996 resulted in a 4.1% growth rate drop, whereas staggered elections in 2001 saw a staggering 30% decline. This underscores the potential economic stability that could arise from adopting a unified electoral approach.

Quantifying the Economic Impact

To put the projected GDP growth into perspective, 1.5% of India’s GDP for the 2023-24 fiscal year equates to approximately ₹4.5 lakh crore. This amount is comparable to half of the public expenditure on health and one-third of educational spending.

A Promising Future?

As the debate unfolds, the potential of “One Nation, One Election” to reshape India’s political landscape and stimulate economic growth becomes increasingly apparent. With thorough analysis and support, this initiative could herald a new era of governance efficiency and economic stability.