Trinamool Congress Party supporters celebrate their party's election results in Kolkata on Tuesday. EPA
Trinamool Congress Party supporters celebrate their party's election results in Kolkata on Tuesday. EPA
Trinamool Congress Party supporters celebrate their party's election results in Kolkata on Tuesday. EPA
Trinamool Congress Party supporters celebrate their party's election results in Kolkata on Tuesday. EPA


Whatever happens in India's election, change is coming


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June 04, 2024

In a results-oriented business like electoral politics, there is rarely such a thing as a moral victory. But that is precisely what India’s opposition parties achieved on Tuesday even though they are, numerically speaking, unlikely to win the general election.

By evening, it appeared that the governing Bharatiya Janata Party would end up with the highest number of seats in the lower house of Parliament. The National Democratic Alliance of which it is a part was leading in more than half the number of seats.

And yet if one were to gauge the mood on the ground from afar – including by trawling through mainstream and social media channels and talking to people from different walks of life – it would be easy to think that the party that’s been in power for a decade just got crushed by its opponents.

That’s because the BJP's victory was more sweeping in the 2014 and 2019 general elections, when it clinched 282 and 303 seats and didn’t require support from other parties to form government. But now, in a situation where it needs help from its partners in the NDA, the ball is not entirely in its court.

That in and of itself is a win for the opposition INDIA alliance that has suffered defeat after electoral defeat over the past 10 years, both at the national and local levels.

  • BJP supporters in Abu Dhabi celebrate while watching the election counting in India as Narendra Modi leads by a small margin. Victor Besa / The National
    BJP supporters in Abu Dhabi celebrate while watching the election counting in India as Narendra Modi leads by a small margin. Victor Besa / The National
  • An elderly Indian BJP supporter in Abu Dhabi smiles while watching the election results. Victor Besa / The National
    An elderly Indian BJP supporter in Abu Dhabi smiles while watching the election results. Victor Besa / The National
  • BJP supporters in Abu Dhabi watch the Indian general election. Victor Besa / The National
    BJP supporters in Abu Dhabi watch the Indian general election. Victor Besa / The National
  • Mr Modi's alliance was heading towards a majority in vote counting trends. Victor Besa / The National
    Mr Modi's alliance was heading towards a majority in vote counting trends. Victor Besa / The National
  • The numbers so far show the margin of victory may not be as large as exit polls suggested. Victor Besa / The National
    The numbers so far show the margin of victory may not be as large as exit polls suggested. Victor Besa / The National
  • The BJP is leading in 244 of the 543 seats in the directly elected lower house of parliament, according to evening vote count trends. Victor Besa / The National
    The BJP is leading in 244 of the 543 seats in the directly elected lower house of parliament, according to evening vote count trends. Victor Besa / The National
  • Kerala supporters of the Congress in Dubai. Chris Whiteoak / The National
    Kerala supporters of the Congress in Dubai. Chris Whiteoak / The National
  • The opposition INDIA alliance led by Rahul Gandhi's centrist Congress party was leading in over 220 seats, higher than expected. Chris Whiteoak / The National
    The opposition INDIA alliance led by Rahul Gandhi's centrist Congress party was leading in over 220 seats, higher than expected. Chris Whiteoak / The National
  • Congress alone was leading in nearly 100 seats, almost double the 52 it won in 2019 - a surprise jump that is expected to boost Mr Gandhi's standing. Chris Whiteoak / The National
    Congress alone was leading in nearly 100 seats, almost double the 52 it won in 2019 - a surprise jump that is expected to boost Mr Gandhi's standing. Chris Whiteoak / The National
  • Supporters of the opposition party at the KMCC Kerala Muslim Cultural Centre, Dubai. Chris Whiteoak / The National
    Supporters of the opposition party at the KMCC Kerala Muslim Cultural Centre, Dubai. Chris Whiteoak / The National
  • Kerala supporters of the Congress in Dubai. Chris Whiteoak / The National
    Kerala supporters of the Congress in Dubai. Chris Whiteoak / The National

Hectic parleying had already begun before the tallying finished, as the opposition camp reportedly reached out to some of the smaller NDA parties to jump ship. But regardless of who forms government in the coming days – and the BJP might still be able to hold its flock together – what is crystal clear is that something has shifted in Indian politics: it is almost certain to regress towards the mean.

Since 2014, on the back of brute majorities in Parliament, the administration led by Prime Minister Narendra Modi has dominated national politics. Opposition parties – primarily the Indian National Congress that previously held power for more than five decades – had been beaten into submission, reduced to double-digit numbers of MPs in the lower house. The BJP rode the “Modi wave” to win elections in a majority of the states and urban centres, albeit with notable setbacks.

During this period, the government targeted the opposition by sending investigative agencies after its leaders, purportedly to tackle corruption, although critics allege that the real reason was to co-opt these politicians and their vote banks.

Gauging the mood from afar, it would be easy to think that the party that’s been in power for a decade just got crushed

It also rammed through a number of reforms, including the abrogation of Article 370 that gave autonomy to the disputed territory of Jammu-Kashmir and stopping the practice of “triple talaq” that empowered Muslim men to unilaterally end their marriage.

Whenever the government faced a public backlash, such as during the passage of three contentious farm laws and a citizen amendment act, it did the prudent thing and withdrew these reforms. But opposition parties and civil society continued to paint the deeply ideological Hindu nationalist party as a force determined to eventually amend the Constitution to convert the republic from a liberal, secular democracy to an illiberal, Hindu ethnocracy.

Clearly, this narrative was not compelling enough for millions of Indians who were, quite understandably, more focused on the government’s economic programmes, infrastructure projects and muscular foreign policy that undoubtedly benefited the country. Until the long-drawn-out general election got under way in May, therefore, it was a given that the BJP would retain power, perhaps with an even bigger mandate.

But two factors may have come into play, for the election to throw what is effectively a hung verdict.

One is the economy. India’s gross domestic product growth has been impressive since the Covid-19 pandemic, and the Modi government has tamed inflation. But while global media focused on the positives – particularly at a time when multinational companies were adopting the “China plus one” strategy of investing in a country other than the world's second-largest economy – they largely ignored issues like rural distress and youth unemployment.

Experts have often talked about the silent voter, who would opt to make his or her dissent known at the ballot box rather than at protest rallies. Given how well the opposition has fared in this election among those living in rural areas and small towns, the silent voter has ultimately prevailed – no matter what the opinion polls, including the exit polls released on Saturday, told us.

The second factor may have been an acute fear, whether rational or not, among the marginalised sections of society that the BJP would mount an assault on the very idea of affirmative action as part of its agenda to amend the Constitution. This, many openly feared, would include rolling back reservations that guarantee government jobs, college admissions and welfare schemes to people from the lower caste groups. The INDIA alliance preyed, with success it seems, on this widespread anxiety during the election.

All this means that the BJP, while still a force to reckon with, will be a diminished one.

It’s important to note that over the past decade, Mr Modi’s popularity was such that a cult of personality had emerged that subsumed most of the faultlines and contradictions that have been a feature of Indian politics. Such was his command that politicians, policymakers and bureaucrats marched to a sometimes-overcentralised government’s tune. The BJP, critics often claimed, was in the middle of pursuing its own One Nation project that included a deliberate subordination of the states to the federal government. This could change.

Second, one presumes that with more representatives in Parliament, the opposition will be much stronger for the next five years. This is vital. The hope for millions of Indians must be that the new political equations translate to more robust debates and discussions in the highest legislature of the land and greater co-operation among parties and governments at all levels.

This would amount to more than just a moral victory for the people of India.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Fireball

Moscow claimed it hit the largest military fuel storage facility in Ukraine, triggering a huge fireball at the site.

A plume of black smoke rose from a fuel storage facility in the village of Kalynivka outside Kyiv on Friday after Russia said it had destroyed the military site with Kalibr cruise missiles.

"On the evening of March 24, Kalibr high-precision sea-based cruise missiles attacked a fuel base in the village of Kalynivka near Kyiv," the Russian defence ministry said in a statement.

Ukraine confirmed the strike, saying the village some 40 kilometres south-west of Kyiv was targeted.

If you go

The flights
Etihad (etihad.com) flies from Abu Dhabi to Luang Prabang via Bangkok, with a return flight from Chiang Rai via Bangkok for about Dh3,000, including taxes. Emirates and Thai Airways cover the same route, also via Bangkok in both directions, from about Dh2,700.
The cruise
The Gypsy by Mekong Kingdoms has two cruising options: a three-night, four-day trip upstream cruise or a two-night, three-day downstream journey, from US$5,940 (Dh21,814), including meals, selected drinks, excursions and transfers.
The hotels
Accommodation is available in Luang Prabang at the Avani, from $290 (Dh1,065) per night, and at Anantara Golden Triangle Elephant Camp and Resort from $1,080 (Dh3,967) per night, including meals, an activity and transfers.

Updated: June 06, 2024, 7:13 PM