Cash Handouts to Women Secure Electoral Victory in Maharashtra
In a startling political maneuver, the Bharatiya Janata Party (BJP) secured a significant victory in the recent Maharashtra assembly elections, thanks to a cash handout scheme aimed at underprivileged women.
MaharashtraBjpCash HandoutsUnderprivileged WomenElectionsReal Estate MaharashtraNov 25, 2024
In the April-May federal polls, the BJP-led coalition won just 17 out of Maharashtra’s 48 seats, a dramatic drop from the 41 seats they won in 2019. Opposition leader Rahul Gandhi’s alliance, on the other hand, bagged 30 seats. Faced with this setback, the BJP doubled down to prevent a repeat of the debacle in the local assembly elections that just concluded. The state’s June budget made an allocation for 25 million women to receive 1,500 rupees ($18) a month in cash. This strategy seems to have paid off.
The BJP, which fielded 149 candidates for the state’s lawmaking body, secured victories for 132 of them. With allies, the total is 235. The opposition has been left far behind, with its leaders alleging electoral malpractices. The stunning reversal in less than six months had very little to do with the prime minister’s appeal among the masses. Instead, it highlights India’s significant economic inequalities and how a small cash handout to underprivileged women can dramatically influence electoral outcomes.
The message is not lost on politicians in other states. Bond markets, too, must take note of the implications. Expect the payout to female voters to keep rising, especially in states like Maharashtra, which have billions of dollars of real estate projects to award. For a state whose people earn 50% more than India’s per capita income, an $18 handout may not seem like much. However, averages can be misleading. A typical worker in a rich urban center like Mumbai makes $5,000 annually, three times more than a worker in the drought-prone farmlands of Maharashtra’s Vidarbha region. In the national elections, the opposition alliance had won 44%-45% of votes in poor and very poor districts, 3 to 7 percentage points higher than the rival grouping, according to an analysis by The Hindu newspaper. It is this gap that Modi’s coalition closed beyond expectations.
Maharashtra’s importance in India’s politics extends beyond its representation in the national parliament, where it holds the second-highest number of seats after Uttar Pradesh. Being home to the commercial capital of Mumbai, Maharashtra has a significant advantage in terms of money power. Historically, this influence has been leveraged through agrarian interest groups, with many state politicians being sugar barons. However, in the recent local assembly election, real estate became a major contentious issue.
Opposition leader Rahul Gandhi repeatedly criticized the BJP-controlled government for giving a sweetheart shantytown redevelopment deal to Gautam Adani, India’s second-richest tycoon and a longtime friend of Prime Minister Modi. Gandhi also alleged that Adani, who was charged by the US in a $250 million bribery case hours after voting ended, played a role in keeping the BJP in power. Neither Modi nor Adani responded to these allegations.
The right to redevelop 600 acres of land in Mumbai, one of the world’s most densely populated urban areas, is a lucrative opportunity. Adani’s 80% stake in a joint venture with the state government to execute a $3 billion makeover of Dharavi, the city’s largest slum, was a hot-button political issue. The tender award was sweetened just months before the state elections by adding 255 acres of publicly owned saltpans to provide housing for those displaced from the slum. Any new construction in Mumbai looking to go tall will have to buy a part of its development rights from the Dharavi project. To see this redevelopment through, the current administration must stay in power, which is where the welfare payments to women come into play.
If the coalition led by Gandhi had dislodged the current Maharashtra government, the award to Adani might have been canceled. However, do voters really care about cronyism? The state’s politics have long been dominated by powerful economic interests. India is the world’s second-largest producer of sugar, with Maharashtra contributing 10 million tons annually. The 2.7 million members of the state’s sugar cooperatives are a potent electoral force.
“Don’t ask about ideology in Maharashtra,” said Ajit Pawar, who became a deputy chief minister after crossing over to Modi’s camp last year. “Everybody wants power here,” he added, referring to a 2019 meeting at Adani’s residence where defection was allegedly pitched as a way to avoid investigations for economic offenses.
For now, it seems that political power in the state comes from square feet of Mumbai real estate and an $18 payment to impoverished women.
Frequently Asked Questions
What is the significance of cash handouts in Maharashtra's recent elections?
Cash handouts to underprivileged women played a crucial role in the BJP's victory in the recent Maharashtra assembly elections, highlighting the impact of such welfare schemes on electoral outcomes.
How much did the BJP allocate for the cash handout scheme in Maharashtra?
The BJP allocated 1,500 rupees ($18) a month in cash to 25 million women in Maharashtra as part of their election strategy.
What was the opposition's performance in the recent Maharashtra assembly elections?
The opposition, led by Rahul Gandhi, performed poorly in the recent Maharashtra assembly elections, securing far fewer seats compared to the BJP and its allies.
Why is real estate a contentious issue in Maharashtra's politics?
Real estate is a contentious issue in Maharashtra's politics due to the state's significant urban development projects, such as the Dharavi slum redevelopment, which involve large sums of money and potential economic benefits.
How do economic inequalities in Maharashtra influence elections?
Economic inequalities in Maharashtra, with a stark contrast between rich urban centers and poor rural areas, influence elections by creating different voter priorities and needs, which political parties try to address through targeted welfare schemes.
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