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While Assembly Elections Are Just Weeks Away In Maharashtra And Haryana, Statistics Reveals That Both The States Had A Robust Economy Under BJP Rule

Maharashtra and Haryana elections are just few weeks away and the current ruling party BJP has made tremendous development in the state. It is said that although they house just 11 percent of the population, they contributed nearly 18 percent to the country’s economic output in the year 2018-2019.

Maharashtra has the largest state economy and Haryana has the third-highest per capita income among states. Under the current government, Haryana’s gross state domestic product (GSDP) growth outpaced India’s gross domestic product (GDP) growth. Maharashtra too has done the same in the past three years. In the past five years, the Indian economy has expanded at an average annual rate of 7.5%, while Maharashtra’s and Haryana’s have grown at 7.6% and 8.7%, respectively.

Although economy of Maharashtra is larger and is called as the financial hub of India as major banks have their headquarters in the city, Haryana is home to Maruti Suzuki’s and Hero MotoCorp’s plants, produces two thirds of the country’s passenger cars and 60% of its two-wheelers.

But, both the states have their own setbacks with Maharashtra failing to convince Foxconn a Taiwanese company to set up a unit in the state and there is also discontent of the farmers.

In Haryana, the vehicle sales have been declined for the 10th consecutive month in August.

Well, the situation of Haryana is said to be stable as the decline of vehicle sale does not affect GDP numbers or revenue generation. But, Maharashtra’s industrial growth fell from 7.6% in 2017-18 to 6.9% in 2018-19, and the state’s position on the ease of doing business index worsened from 10th to 13th between 2016 and 2018. It is not easy to attract businesses by Maharashtra as it faces a competition from Gujarat.

Haryana too might have to offer companies enough incentives to choose the state over Punjab and Himachal Pradesh. But, Haryana has jumped from 6th to 3rd position on the ease of doing business index.

Another important matter of discussion is the job creation. In Maharashtra and Haryana the unemployment rate has risen while India’s unemployment rate has come down. Well, the government cannot be blamed for this as there are several factors which contribute in the rise of unemployment rate.

But Maharashtra’s fiscal deficit has risen from 1.8% to 2.1% and Haryana’s remains at 2.9%, after a spike in 2015-16.

Altogether, experts claim that even though there has been ups and downs the states have seen a strong economic growth in the past five years.

The economic growth is not the only advantage for the BJP government but the opposition too will not be able to put up a fight in both the states.

According to a few political analysts, In Maharahstra the BJP-Shiv Sena alliance could end up winning 200 of the 288 seats. The Shiv Sena has been demanding more seats and the BJP is willing to give up. The coalition also has the benefit of its decision to set aside 16% of government jobs and seats in educational institutes to the Maratha community.

In Haryana, too, the opposition has lost the plot because they could not cut themselves off from caste and regional politics. Due to these factors, they have lost connect with the people of Haryana which is an advantage for BJP.

Anyway, speculations aside, it is for us to see whether the BJP government which led to the growth of these states will come into power once again.

Sharanya Alva

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