Issue 51 15 May 2014

SMU Political-Economic Exchange

AN SMU ECONOMICS INTELLIGENCE CLUB PUBLICATION
A 2014 Indian General Elections Special
This Issue in Brief:
Indias Electoral Circus
Damini Roy gives a lowdown on the Indian political scene, as the
vying candidates battle it out in the last legs of the 2014 Indian
general elections.

The Indian General Elections 2014: Candidates
With the outcome of the 2014 Indian general elections looming over
the horizon, a team of SEIC writers put together a detailed profile of
the candidates vying to be Indias next Prime Minister.

In collaboration with
Proudly supported by


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Issue 51 15 May 2014

For readers who are new to this discussion, perhaps the best way to think of Indias current political scene
is to imagine an ill-orchestrated circus. Think of a stern ringleader (Sonia Gandhi, the Congress party
president and chairperson of the ruling United Progressive Alliance coalition) making a timid lion
(Manmohan Singh, the current/outgoing Prime Minister) jump through hoops, while the restless elephant
(Narendra Modi, the contender for the Prime Ministerial post this year) waits to take centre stage.
Flanking the sides are an aloof zebra (Rahul Gandhi, the Congress nominee for the Prime Ministerial race),
and a motley of other show animals. Indias election is similarly disorganized: a chaotic mix of political
arm-wrestling and wealth-flashing.
Billions have been spent so far on excessive national campaigns by regional and national parties alike. A lot
of the countrys resources have also been diverted to ensure that 550m1 voters can exercise their
constitutional right to elect their leader democratically. On the one hand, the 2014 Indian election is the
victory of democracy; the largest democratic election in history has concluded today. Yet, knowing how
unpredictable popular elections can be, the question remains - who will be the next Prime Minister?
Jostling for Political Clout
For all its flaws, the Congress party has a few things to its credit. It has managed to ensure the survival of
Manmohan Singh as Prime Minister for two consecutive terms. Despite slowing GDP growth (down to a
dismal 5.5% average2) and multiple corruption scandals, the Congress coalition (UPA) stayed in power for
the second term as well. It has fought off the incumbents disadvantage so far, ensuring that continuity in
leadership contributes to the countrys general political stability. In fact, Congress has always been adept
at forging coalitions with regional parties; perhaps its task is made easier by the fact that it is Indias only
national party, per se. But recent exit polls results show that the Bhartiya Janata Party (BJP) is gaining
mass popularity across the nation, along with its bold Prime Ministerial nominee, Narendra Modi.
Compared to Rahul Gandhi, Narendra Modi has both experience and achievement to make his claim to the
coveted post. Having ushered in an era of unprecedented growth in the state of Gujarat, Narendra Modi
has shown voters that creating wealth by supporting commerce has gains for all. During his three
consecutive terms as Chief Minister of Gujarat, Modi has rampantly done away with rusty government
officials and unproductive state machinery. Based on a policy of promoting economic growth, he has won
the respect of the local business diaspora. Understandably, Modis claim to the Prime Ministers post has
the strong backing of business honchos who have gained massively from Gujarats business environment.
It is no surprise then, that the BSE Sensex (a free-float market-weighted index of Indias 30 top-performing
companies) has also been on an upswing for most of this week - a sign that investors are optimistic about
Modis victory.
Indias Electoral Circus
by Damini Roy


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Issue 51 15 May 2014
Certainly, it seems that Modi will have little trouble defeating the young and less experienced Congress
candidate, Rahul Gandhi. With bare minimum success as a Member of Parliament, Rahul has had trouble
campaigning in his familys stronghold district of Amethi this year. Known to house a strong pro-Congress
voter base, hardly has anyone but a Gandhi won from Amethis electoral provinces. However, the tidings
of this year have been different. With Modi making a visit4 to the scions den and the nascent Aam
Aadmi party (AAP) fielding a candidate from the constituency as well, things havent gone smoothly for
Rahuls campaign. Seeing his sister Priyanka Gandhi rallying harder for him than himself, even Congress
party members are wondering whether the Congress-led United Progressive Alliance (UPA coalition) will
withstand this election or will have to make way for a BJP-led National Democratic Alliance (NDA).

Events in the key state of Uttar Pradesh also look bleak for the Congress. With a population larger than
that of Brazils, the state of Uttar Pradesh is a crucial battleground to conquer. Modis campaign across the
state and especially in Varanasi shows that masses are being mobilized in BJPs favor. Further, the
presence of strong regional parties hinders the Congress chance to claim seats from the UP constituency.
However, before jumping to any hasty conclusions, an important fact needs to be mentioned. Given that
Uttar Pradesh is a state that comes into the limelight mainly during national elections, it is obvious that
long-standing regional parties command more loyalty than either the Congress or the BJP. However, given
the Congress tact in making alliances with regional leaders, it is hard to assume which party will ultimately
gather the required majority in the Indian parliament, based on the victory in Uttar Pradesh.

Thinking Twice
When trying to predict who will win the Prime Ministerial race, there are few more dynamics to think of.
The large number of first-time, young urban voters during this election is something unique. Not clearly
knowing their preferences makes it harder for parties to canvass for their votes, and thereby fuels the
unpredictability of the polling results. A divided voter base is also a peculiar characteristic of Indian
elections. This is mainly because of the socioeconomic disparities in voter backgrounds. Additionally, the
uncertain course of coalitions can lead to instability in the broader sense. If a party fails to gather the
necessary parliamentary majority (which means securing 272 out of the 543 seats in the Lok Sabha/lower
house of the Indian parliament), bargains struck with regional parties could get called off and result in an
unwieldy legislative set-up. Therefore, it is essential that the winning party secures a large winning margin
so that it can ensure that it rules with a clear mandate.

The success of the campaign agendas of the Prime Ministerial candidates needs to be re-examined as well.
At Varanasi itself, Modi campaigned aggressively to win the hearts of Hindu voters, posing with Hindu
deities and alluding to folklore in his speeches. This is worrying to see, because of two reasons. First,
Modis lack of concern to take action during the anti-Muslim Godhra riots as Chief Minister of Gujarat is
something most voters cant forget. Second, Modis unabashed support for the RSS (Rashtriya
Swayamsevak Sangh, a right-wing Hindu nationalist party) sends the wrong message to other religious
minorities in the country. If such a Prime Ministerial candidate were to win based on such an agenda, then
Indias minorities would feel marginalized and underrepresented. As a secular nation, this is something
India needs to be wary of.




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The 10-year Itch
At large though, it seems that most Indian voters are discontent with the poor performance of the
Congress over the past ten years. They are in the mood for a change in leadership, and the strong
presence of Modi-led BJP may prove to be an attractive alternative. However, for those who hail Modi
to be the marketeer of growth, it might be prudent to recognize that the Gujarat model of growth will
be harder to replicate at the national level. Also, while Modi may have managed to overhaul most of
the Gujarats state officers and install his own men to expedite legislative and legal processes, such a
strategy will give way at the national level. What Rahul Gandhi or another candidate would do for the
Indian economy remains to be seen.
However, irrespective of whoever wins - Modi, Rahul or a third unexpected candidate - a key challenge
that will plague the leader will be to work with the existing state machinery. Given the problem of
systemic graft and corruption, Indias state machinery is less efficient than it should be. This could pose
to be a problem for even a man with Modis experience, for instance.
The wait to see who will lead the nation for the next five years is nerve-wrecking. Therefore, what the
Indian voter needs to hope for is that the incoming Prime Minister has a clear vision and political
mandate, which allow him to pave the way for Indias growth. In the meanwhile it suffices to say that
the 2014 Indian elections will be a fiercely-contested race till the finish line.
References

1. Retrieved from: http://www.theguardian.com/world/2014/may/12/indias-550m-voters-usher-new-era

2. EIU estimates

3. Retrieved from: http://in.reuters.com/article/2014/05/14/uk-markets-india-shares-
idINKBN0DU0ST20140514

4. Retrieved from: http://www.ndtv.com/elections/article/election-2014/narendra-modi-to-campaign-in-
rahul-gandhi-s-amethi-today-518341





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Issue 51 15 May 2014
The Indian General Elections 2014: Candidates
by Gautam Nagpal, Hiremath Siddhant Sanjev, Riya Rajagopal, Rhea Chandra, Shivika Srimal

1. Jayalalithaa Jayaram
Party: AIADMK (All India Dravida Munnettra Kazhagam)
Intrduction: Born in 1948, Jayalalithaa began a career in the film industry before entering politics, and
starred in over 140 films. In 1982, she joined a political party known as AIADMK, which was started by a
fellow Tamil cinema actor, M.G Ramachandran. Due to her fluency in English, she was encouraged to take
up a seat in the Rajya Sabha as a Member of Parliament, and was subsequently nominated for it. Upon the
death of the partys founder, Jayalalithaa claimed to be the political heir and assumed leadership of the
party.
Jayalalithaa has served three terms as the Chief Minister of Tamil Nadu, with terms beginning in the years
of 1991, 2001 and 2011.
Mission/Vision for India: Jayalalithaa envisions a resurgent India in which Tamil Nadu plays a key role,
in which there are open markets, inclusive societies, enterprise and creativity driven by knowledge and
shaped by family values. She has also stated that she someday aims at creating a nation of growth with
equity, peace, stability and development, and a modern, secular and prosperous India.
Economic Policies: In the recently released manifesto by the AIADMK, certain policies and visions for
India were prominent:
Implementation of the freebie scheme (popular in Tamil Nadu) to all parts of India. Citizens can
expect to receive items such as grinders, mixers, fans, laptops, goats and other necessities.
Increase the income-tax exemption limit from Rs. 200,000 to Rs. 500,000.
Measures will be taken to rescind FDI in retail nationally.
Popularity Quotient: Becoming the next Prime Minister of India requires a win of all 40 seats in the
states of Tamil Nadu and Puducherry. She is immensely popular in these regions, having been CM for
three terms in the past. Initially having formed a coalition with other Left parties known as the Third Front,
there are now rumours about a new Federal Front, which is being formed after the collapse of the Third
Front. This Front, being largely comprised of parties that are immensely popular in their states, stands a
chance of winning if they manage to clinch at least 35 seats in the Lok Sabha. If this scenario plays out,
Jayalalithaa could become Indias next Prime Minister.
Controversies: There are currently 12 major corruption cases against Jayalalithaa and 33 cases against
her associates. Some examples are as follows:




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Release of Assassins: In February 2014, Jayalalithaa announced that she would be using her legal
and constitutional rights to free seven people who were found guilty of assassinating Rajiv Gandhi,
a former Prime Minister of India. Her decision to release the killers who were sentenced to life
received huge backlash from the country.
Pleasant Stay Hotel Case: Jayalalithaa and her colleagues were accused of allowing a seven-storey
luxury hotel to come up in a hill station, which violated building laws applicable to such areas that
permit only two floors. In February 2000, the court sentenced Jayalalitha and her four colleagues to
one year's rigorous imprisonment for favouring the owner of the hotel in return for monetary
compensation when she was ruling Tamil Nadu. Her conviction sparked off rioting across the state,
leaving three college girls dead. The three girls were burnt to death when an angry group of
AIADMK workers seta university bus ablaze.
Disproportionate wealth: During her tenure as chief minister, Jayalalithaa and her associates
acquired more than 100 properties, besides jewellery and other assets worth Rs. 660 million.
Different agencies of the government have yet to complete investigations into the case.
2. Narendra Modi
Party: Bharatiya Janata Party (BJP)
Intrduction: Narendra Modi is a Hindu nationalist and is a member of the Rashtriya Swayamsevak
Sangh (RSS), a Hindu nationalist group. He has been the longest serving Chief Minister of the state of
Gujarat, and is currently in his fourth term. Modi has been a member of the Indian political scene for 27
years, having joined the BJP in 1987. The positions he has held within the BJP include General Secretary
and National Secretary. In March 2013, he was appointed as a member of the BJP Parliamentary Board, its
highest decision-making body, and also as Chairman of the party's Central Election Campaign Committee.
He has been Chief Minister of the State of Gujarat since 2001.
Mission/Vision for India: Narendra Modi has outlined a transformative vision for India, pledging to
project the country as a worldwide brand if elected. His view is that urbanization must not be viewed as a
crisis, but as an opportunity for growth. He puts emphasis on several areas from checking price rises and
inflation and controlling poverty, to developing bullet trains and creating an improved health
infrastructure to focus on wellness.
Economic Policies: Narendra Modi shows a clear sense of purpose and clarity in his vision for inclusive
economic growth. His agenda has been drafted with inputs from some of the countrys top industrialists
and economists, and spans a wide variety of topics, from bullet trains connecting India's four corners to
100 smart cities, battling inflation through a price stabilization fund and hi-tech innovations to protect
farmers from price vagaries.




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At one of his partys national council meetings, he spoke at length on infrastructure - reviving shuttered
power plants, modernizing railways, setting up gas grids and connecting India through optical fibre
networks. This was also supplemented with proposals that will have a resonance with the common man
and Indias farmers building agro-infrastructure, setting up mechanisms to monitor real time plantation
and harvest of crops, as well as courts to try hoarders and black marketers. He favors liberalization of the
retail sector, and also stresses on the need to develop the rural areas, as this will not only help in mitigation
of migration to urban centres, but will also help in reducing the income gap between the rich and the poor.
While his stance on the much debated FDI issue is still not clear, big businesses and investors are positive
that Modis appointment to the prime ministerial post will be a huge boost for the economy, especially
after the current government, under which Indias economic growth rate has nearly halved. Although
Modis track record in Gujarat offers convincing precedence of success, it remains to be seen whether he
can replicate this on the national stage. One major problem that every Indian government has faced, and
to which Modis government will definitely not be an exception, is the frustrating levels of bureaucracy and
red tape present in India. Moreover, Indias budget deficit as of 2012-13 stands at 4.9% of GDP, and with
the huge amount of development and building of infrastructure that Modi is promising, we can only wait
and see how the budget, and the fiscal deficit in particular, will be affected.
Popularity Quotient: Several economists, foreign brokerages and stock market players have backed
Modi's style of governance. US investment bank Goldman Sachs had upgraded India's rating to market
weight from underweight on optimism of policy certainty post elections. Moodys Analytics also issued a
statement saying that a Narendra Modi-led BJP government, if elected, should offer a more business-
friendly policies that will further support confidence and investments. CNN-IBN, a local news agency,
conducted an opinion poll which projected that it is almost certain that the next government will be
headed by Modi.
Controversies: One of the biggest controversies surrounding Narendra Modi is that of the 2002 Gujarat
violence, a period of inter-communal violence in Gujarat which lasted for approximately 3 days. It began
with the burning of a train in which 58 people were killed, most of them Hindu pilgrims, allegedly by
Muslims. This led to widespread anti-Muslim violence throughout the state, and the Gujarat
administration was accused by human rights organizations, the opposition, and sections of the media of
taking insufficient action against the violence, and condoning it in some cases. Rumours abounded that it
was Modi, a Hindu nationalist, who initiated the violence in the first place, or at the very least, turned a
blind eye to the ongoing violence against Muslims. In 2010, a Special Investigation Team (SIT), appointed
by the Supreme Court of India, reported that they did not find any incriminating evidence against Modi of
willfully allowing communal violence in the state. In July 2013, it was alleged that the SIT was suppressing
evidence.



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3. Mamata Banerjee
Party: All India Trinamool Congress (AITMC)
Intrduction: Mamata Banerjee, the powerful figure behind the All India Trinamool Congress, is an
extremely important player in the 2014 Indian general elections. She is currently serving as Chief Minister
of West Bengal and Chairperson of the All India Trinamool Congress Party. She became the first women to
hold the office of Chief Minister of the state of West Bengal in 2011.
Mamata forayed into politics when she joined West Bengal Chhatra Parishad, the student wing of
Congress, while studying at the Jogmaya Debi College in Kolkata in 1970s. Graduating to party politics, she
was General Secretary of West Bengal Mahila Congress in 1979-80, and subsequently held other posts in
Congress. She was elected as the Union Minister of state for Human Resources Development, Youth
Affairs and Sports and Women and Child Development in 1991. She quit Congress and in 1997, formed the
All India Trinamool Congress. In 1999 she went on to become Indias first female Railway Minister. She has
also been named one of the 100 most influential people of the world by Forbes Magazine, and one of the
50 influential leaders in finance by the Bloomberg Markets Magazine.
Mission/Vision for India: The AITMC is currently the sixth largest party in Lok Sabha with 19 seats.
The party has not yet published a manifesto for the 2014 General Elections but in various speeches, she has
stressed on the rollback of reforms including FDI in retail, increase in the price of diesel and limiting the
number of subsidised cooking gas cylinders for households. Although she denies the possibility of
becoming the Prime Minister, she made it clear that her priority was to work for the people and formulate
pro-people policies.
Economic Policies: Mamata Banerjees pro-people policy is very literally translated into her staunch
support of the labour intensive industries. She feels that labour-intensive Micro, Small and Medium
Enterprises, as in textiles, agro-based, food processing and aquaculture, leather, gems and jewellery
should be nurtured and developed to utilise Indias high population. Although, surprisingly, she has stated
that she supports latest technology and Foreign Direct Investment (FDI), especially in manufacturing, sun-
rise industries and high tech areas. Even with the strong emphasis on development of the IT and
electronics industry, she emphasizes on the role of large amounts of manpower in these fields.
Her claim to have a pro-industry policy has not quite been reflected in the past as she has been known to
drive industries out of Bengal, such as that of the Tata Motors plant in Singur. However, in a recent
interview to defend herself, she highlighted that SAIL is currently developing a plant in Durgapur and is
investing Rs 20,000 crore, and that the NTPC too is investing about Rs. 10,000 crores.
Popularity Quotient: Mamata Banerjee is extremely popular with the rural population due to her
support for labour-centric industries. However, she has recently lost her reputation among the urban
because of her erratic policies and her intolerance to criticism. However, her vote banks in the rural are
sufficient to keep her in power in West Bengal and may be the reason to bring her to power even in the
Central Government as a Federal Front in collaboration with other parties.


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Issue 51 15 May 2014
Controversies: Cartoon Controversy- A Jadavpur University professor, Ambikesh Mohapatra was
arrested for drawing a cartoon of Mamata Banerjee and her fellow AITMC members. However, what was
more laughable was the charges put against him. He was booked for outraging the modesty of a woman
(punishable with one years imprisonment), defamation (which carries a maximum term of two years
imprisonment) and hacking (punishable with three years of prison and a fine of up to Rs.2 lakh).
Mohapatra was allegedly beaten up by AITMC men and forced to write a statement that he had circulated
the cartoon "motivatedly" as he was a Communist Party of India-Marxist activist.
Singur Tata Nano Controversy- It refers to the controversy generated by land acquisition of the proposed
Nano factory of Tata Motors at Singur of the Hooghly district, West Bengal, India. Singur gained
international media attention since Tata Motors started constructing a factory to manufacture their $2,500
car, the Tata Nano, at Singur. The small car was scheduled to roll out of the factory by 2008. That time,
Mamata Banerjee was leader of the opposition in the government. Banerjee's "Save Farmland" movement
was supported by environmental activists like Medha Patkar, Anuradha Talwar and Arundhati Roy. Leftist
activists also shared the platform with Banerjee's Trinamool Party. The Tatas finally decided to move out
of Singur on 3 October 2008. Ratan Tata blamed agitation by Banerjee and her supporters for the pull-out
decision. On 7 October 2008, the Tatas announced that they would be setting up the Tata Nano plant in
Sanand, Gujarat.
Star-struck candidate list- Mamata Banerjees announcement of the candidate list for the General
Elections 2014 was followed by a lot of debate. Her star-struck candidate list includes inexperienced
celebrities like Bengali celebrities Dev, Moon Moon Sen and Sandhya Roy, as well as singers Indranil Sen
and Soumitra Sen. She is being widely criticized for a candidate list that is perhaps too rich in glamour and
too poor in experience.
4. Rahul Gandhi
Party: Indian National Congress
Intrduction: Rahul Gandhi, the son of Sonia and Rajiv Gandhi, is the Vice President of the Indian
National Congress party and the Chairperson of the Indian Youth Congress and the National Students
Union of India. Gandhi served as a General Secretary in the All India Congress Committee and represents
the Amethi constituency as its Member of Parliament (MP) since 2004.
Mission/Vision for India: Rahul Gandhis vision for India encompasses the notions of education for all,
a roof over the head of every Indian, more women in power and a growth story that will bring about
demographic transitions.
His vision for the poor mirrors that of Mahatma Gandhis, who claimed that he shall work for an India in
which the poorest shall feel that it is their country, in the making of which they have an effective voice.
Gandhi strives for the democratization of governance so that the poor are effectively empowered to take
charge of their lives, in combination with the money provided by government, to build their own future
instead of being dependent on the bureaucracy-NGO labyrinth.



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He wants deeper and more effective participation of individuals and communities in their own governance
or as he says inclusive governance for inclusive growth This according to him can be achieved by
greater involvement of the youth in the political arena and by strengthening transparency by
implementing laws like the RTI.
Economic Policies: Rahul Gandhi puts forth the following economic policies that he feels are
imperative for the nations growth.
Education for the poor: Connecting local panchayats through a 'knowledge network, where the
Government has already made plans to connect 250,000 village panchayats through an optical fibre
network over the next two years.
Expanding industrial training coverage: Implementing policies that will fund training and skill
development, especially in rural areas so that they are purely demand-driven, facilitated and defined by
the industry that has the most stakes in it.
Decentralization of the rural region: A government that is inclusive from top to bottom According to
Gandhi there is very little money for the poor because vast amounts of money being transferred to the
states through centrally sponsored schemes are not reaching them since panchayats are not central to the
guidelines issued by the Union Government. Thus, he wants to empower local pradhans by giving them
the money directly and making them responsible for building institutions and infrastructure.
Gandhis National Youth Policy of 2014 seeks to achieve a productive workforce through education, skill
development for better employability and entrepreneurship training, a sense of community service and
strong social values, high levels of participation in governance and social inclusiveness by creating
equitable opportunities for all, via policy imperatives and funding by the government to level the
playground for all ages.
Popularity Quotient: Rahul Gandhis incoherent and evasive answers in his television interviews have
definitely marred his public image, especially after the interview with Arnab Goswami which was aired on
the show, Frankly Speaking with Arnab. He is said to not have a firm grasp of an economic vision when
compared to his counterparts such as Modi, Kejriwal etc.
Additionally, the failure of UPA 2 in areas such as growth and inflation control has further diminished the
politicians image. Such is the case, that some people of the country were reported as saying that they
watch his shows and interviews not for enlightenment but for entertainment. Although he appears to
have strong ideas and is headed in the right direction, these initiatives seem to lack detail, depth and most
importantly a concrete plan for implementation. However, Gandhi is seen to be popular amongst many of
the youth. His speech on introducing a smart phone type of education gained much popularity amongst
students in Bangalore, with students participating actively in the discussion.
Controversies: MPhil controversy After journalist, Arnab Goswami accused Rahul Gandhi of having
faked his MPhil degree at Cambridge, there has been much controversy regarding the issue. While the
Congress leader swears that he hasnt done such a thing and is ready to show any affidavit to prove his
degree, a report carried out by the New Indian Express claims that not only has Gandhi bungled up the
dates of his graduation, he has also got the name of the course that he studied on the affidavit wrong. In


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addition, the report indicates that he didn't even clear one of papers. On the other hand, the University, in
a letter, explained that 'Rahul was a student of Trinity College and was awarded an MPhil in Development
Studies in 1995. Hence, Rahul Gandhis qualification remains a matter of controversy.
Creating a communal divide In 2009, in a conversation with the then United States Ambassador to India,
Timothy J. Roemer, Gandhi said that he believed that Hindu extremists posed a greater threat to India
than Muslim militants. Also responding to the ambassador's query about the activities in the region by the
Islamist militant organization Lakshar-e-Taiba, Rahul Gandhi said there was evidence of some support for
the group among certain elements in India's indigenous Muslim population. In a response to this, the BJP
heavily criticized Rahul Gandhi for his statements. This statement can be seen to be a bigger threat to
India since it can be viewed as dividing the people of the country on communal grounds. Furthermore, his
statements are seen as those that contradict the very notion that terrorism is an act devoid of any religion.
Lokpal controversy: On one hand Rahul Gandhi is seen to put forth his anti-corruption ideas and his strong
desire to root out corruption, but on the other hand, he was seen to belittle the Lokpal around the time of
the anti-corruption movement started by Anna Hazare. Rahul Gandhi suggested that Lokpal should be
made a constitutional body and it should be made accountable to the Parliament, just like the Election
Commission of India. He also claimed that Lokpal alone couldnt root out corruption. In response, Anna
criticized Rahul Gandhi, claiming he had made the bill "weak and ineffective". Many saw this statement as
a strategic move to delay the opposition of Anna's members.
5. Arvind Kejriwal
Party: Aam Aadmi Party
Introduction: Born in 1968 in Haryana, Arvind Kejriwal completed his higher education in IIT Kharagpur
with a degree in Mechanical Engineering. Later, he went ahead to work in the Indian Revenue Service. He
was involved in social work and activism, and played a big role in bringing about the RTI act. As an
absolutely new entrant in politics, he is often criticized for his lack of knowledge and understanding of
Indian politics and governance. He has been a social activist for most part of his life. His first plunge into
politics was on the 26th November 2012, when he launched his own political party, the Aam Aadmi Party
(AAP). On 8th December, AAP won the Delhi state elections by trouncing incumbent Delhi Chief Minister
Sheila Dixit from the assembly constituency. On the 18th of December 2013, Arvind Kejriwal assumed the
role of Delhis Chief Minister.
Mission/Vision for India: Most of Arvind Kejriwals inspiration and vision for Indias future comes from
his strong passion to eradicate corruption from India. All his policies are based on his anti-graft motto and
he believes that getting rid of corruption is the only elixir to our economic problems. His partys core
agenda is to pass the Jan Lokpal Bill (anti-graft legislation) and Swaraj Bill (decentralization of governance
in the capital) in the Delhi Assembly.
Economic Policies: Foreign economic policy: When the AAP came into power last month, they sent a
letter to the federal government seeking to rescind the relatively new policy of allowing FDI in the multi-
brand retail sector of Delhi. One of the highly debated reasons given in favour of this decision is that FDI
will cause an increase in unemployment since big businesses will eventually displace smaller retailers.


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Furthermore, businesses in retail that form cartels may force farmers to sell their products for cheap. Not
being in support of liberalization for retail sector in the capital, he claims that he is not opposed to FDI per
se. This is something that ought to be decided on sector-by-sector basis.
Free water policy: Within 48 hours of coming into power, Kejriwal delivered on his promise of providing 667
litres of free water to every household in Delhi. At first instance, this reformatory action seems to elicit
much applause but on looking closer, we may be able to observe some loopholes. Firstly, there will be no
incentive to use a resource efficiently if it is free and has abundant supply. Not being able to realize the
scarcity of water would only lead to more wastage. Secondly, there is no such thing as a free meal. We may
agree with the principle behind the policy but it would be a potential financial drain for the government.
However, addressing this concern, Kejriwal tweeted that it would cost the government just 40 crores for
the last three months of this financial year and Rs. 160 crore a year thereafter.
Economic System: Sometimes being criticized as being leftist, Kejriwal defends himself by claiming to be
Anti Crony Capitalism, not Capitalism. Across India the relationship between politics and business has
become fraught, which is why he believes that preventing private cartelizing can cure India of its economic
woes. Kejriwal says that he is not against privatization, but he most definitely opposes monopolies since
they lead to corruption. One of his famous quotes is the Government has no business to do business.
Popularity Quotient: Some may portray him as a crusader while some may term him an anarchist, but
having brought a breath of fresh air to the field of Indian Politics, Arvind Kejriwal has most certainly
managed to capture the attention of major digital media leaders. He also seems to resonate well with the
mid-income section of the society that wants politicians who dont line their pockets and tycoons who
compete without favors.
In March this year, Kejriwal had emerged as the only Indian leader to feature on Time magazine's top 100
most influential people in the world poll.
Assessment: Although it is hard to criticize his intentions and simplistic plan for economic growth,
Kejriwals ambiguous stance on various other economics issues still stirs much concern. India is hoping to
see Kejriwal go beyond the corruption agenda and perhaps give more concrete plans of his administrative
reforms.
Controversies: Kejriwal's dharna to support Somnath Bharti: On January 20 Kejriwal defied police orders
and urged the capital to join him on a 10-day protest, declaring defiantly, "Yes, I am an anarchist". Kejriwal
and his ministers sat on protest near the Rail Bhawan, close to the office of Prime Minister Manmohan
Singh and the President's House, demanding the union Home Ministry to suspend three police officers who
refused to make a series of arrests ordered by his minister. The BJP used this controversy to hit out at the
AAP government, saying they are more comfortable doing a dharna than focusing on governance.
Resignation- The AAPs exit from government after just 49 days of governance has added to the number of
controversies surrounding him. Arvind Kejriwal had threatened to resign if the Jan Lokpal Bill was not
passed in the Assembly due to lack of support from other parties. This decision has disappointed many AAP
supporters, who feel betrayed by the party for placing Delhi under suspended animation. Many view his
resignation as a well-thought-of escape route, or as a way for him to shirk his responsibilities.






Issue 51 May 2014
SEIC Correspondents for Issue 51:
Wong Shi Jun Aaron (Vice President, SPEX)
Undergraduate
Lee Kong Chian School of Business
Singapore Management University
aaron.wong.2012@business.smu.edu.sg

Zhou Li (Creative Director)
Undergraduate
School of Economics
Singapore Management University
li.zhou.2012@economics.smu.edu.sg
Damini Roy (Writer)
Undergraduate
School of Economics
Singapore Management University
damini.roy.2011@economics.smu.edu.sg
Gautam Nagpal (Writer)
Undergraduate
School of Economics
Singapore Management University
gnagpal.2012@economics.smu.edu.sg

Hiremath Siddhant Sanjev (Writer)
Undergraduate
School of Economics
Singapore Management University
sshiremath.2012@economics.smu.edu.sg
Riya Rajagopal (Writer)
Undergraduate
Lee Kong Chian School of Business
Singapore Management University
riyar.2012@business.smu.edu.sg

Rhea Chandra (Writer)
Undergraduate
School of Economics
Singapore Management University
rheac.2012@economics.smu.edu.sg
Shivika Srimal (Writer)
Undergraduate
School of Economics
Singapore Management University
shivikas.2013@economics.smu.edu.sg