Exit Polls Predict Narrow Victory for Modi in Maharashtra State

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Prime Minister Narendra Modi’s Bharatiya Janata Party is leading in one of the two recent state elections with a small margin, according to exit polls, while the opposition alliance is trailing closely behind.

In the western state of Maharashtra, which includes India’s financial powerhouse of Mumbai, the BJP-led alliance is predicted to win 145 seats, with the opposition close behind with 131 seats in a state legislature of 288 seats.

While the exit polls aren’t definitive, investors would welcome a win by the BJP-led alliance in Maharashtra as it is seen as more business-friendly. A win for the opposition in Maharashtra may disrupt major investment projects launched under the BJP-led alliance, including billionaire Gautam Adani’s plans to revamp Mumbai’s famous Dharavi slum.

The latest voter turnout in Maharashtra stood at about 58.43%, according to the Election Commission.

In October, BJP won a surprise victory in the northern Indian state of Haryana but lost the union territory of Jammu and Kashmir to the Congress alliance. An election victory in an important state like Maharashtra will show that Modi’s popularity remains substantial, even though his party lost an outright majority in national polls.

In Jharkhand state, the exit polls forecast a tie between the BJP alliance and the Congress-led alliance, with both sides within reach of the halfway mark of 41. The latest voter turnout for Jharkhand stood at 67.76%, according to the Election Commission of India.

Official results for both states are due to be released on Saturday.

Maharashtra

The state, currently governed by a BJP-led alliance, contributes over 10% of India’s gross domestic product and is home to companies such as Reliance Industries Ltd. and Tata Group. Maharashtra’s lofty economic reputation, however, is at risk of being tarnished by growing farm distress and high unemployment. It has also seen exceptional political turmoil in recent years, and investors hope the new government will recharge the state’s economic prospects bringing some much-needed stability.

Jharkhand

The state, home to some of India’s biggest steel mills as well as uranium mines, is currently governed by an alliance between a regional party and the Indian National Congress. Approximately 26 million people are registered to vote in Jharkhand, which has a large tribal community.

Jharkhand’s legislative assembly has 81 seats, including 37 which are reserved for candidates from socially and economically backward communities.

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