Big win in Gujarat may lead Modi to take 'radical' approach to economic reforms: China daily

Even as political pundits in India predicted a win for the BJP in Gujarat, China's state-run newspaper Global Times said if the BJP wins an overwhelming victory in Gujarat, the Modi administration may "take more radical approaches to economic reform".

China should take a close look at the BJP's Gujarat campaign, the newspaper asserted, observing that companies doing business in "India should prepare for possible changes in economic policy."

However, a loss for the BJP in Gujarat would be the biggest setback yet for the economic reforms initiated by the Modi administration, the newspaper said.

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"Modi's BJP is making serious efforts to avoid electoral losses in Gujarat, where Modi served for 13 years as chief minister before he was sworn in as prime minister in 2014," the newspaper noted.

On a cautious note ahead of the Gujarat poll results, the newspaper said: "It's possible that voters in other Indian states might be influenced by a BJP loss in Gujarat and Modi's economic reforms might then be abandoned halfway."

The newspaper said a loss in Gujarat would trigger a "domino effect" in India.

The newspaper said in its Op-ed page that people doubt that the "reforms can bring enough benefits to the country's small businesses and ordinary people," adding," the Indian government must find a way to make the reforms gain public support."

The newspaper also cautioned against "possible volatility in India's financial markets next week after the results are announced."

"Modi's "Make in India" campaign and his economic reforms such as the goods and services tax(GST) have to some extent been seen as a continuation of the so-called "Gujarat model of development"," the Global Times said.

The newspaper declared that the Gujarat election may be a "litmus test" for Indian voters' attitude toward PM Modi's reform agenda.