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Gujarat, HP polls a litmus test for Modi govt post-GST: DBS

The election results will provide some insights into how the recent "important, yet disruptive" reforms were interpreted, it said

Press Trust of India  |  Mumbai 

Prime Minister Narendra Modi. (Photo: PTI)
Prime Minister Narendra Modi. (Photo: PTI)

Singaporean lender DBS on Friday said the and elections will serve as a "litmus test" of the Modi Government's popularity in the wake of major reforms including the implementation.

The ruling is "wary" in because of the slow-down in growth, impact of roll-out on small traders and caste rifts, it said in a note.

"These will serve as a litmus test of the government's popularity in light of recent policy changes and reforms, particularly the Goods and Services (GST)," it said.

The will provide some insights into how the recent "important, yet disruptive" reforms were interpreted, it said.

The will "shift the political narrative" towards its fight against corruption and and efforts to ease the GST-driven bottlenecks to assuage the trader community, and support the farm and rural sector with more focused reforms, it said.

Apart from the slowing growth, which is being blamed by observers on demonetisation and a hasty introduction, persona politics is also a key concern for the in as this is the first without as the lead candidate, it said.

"We reckon that drawing any conclusions for the May 2019 general elections based on these might be premature. Next year's state elections might provide a better gauge of the underlying sentiments," it said.

will go to polls on November 9. Elections in Gujarat will be held in two phases -- on December 9 and 14.

An opinion poll conducted by some pollsters has predicted a win for the BJP in both the states, the noted.

First Published: Fri, October 27 2017. 19:40 IST
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