Economics
New Battle Looms in Powerful Indian States as Modi Tightens Grip
- Those led by India’s ruling party may enact reforms faster
- State leaders the ‘defining factor’ in easing investment
Photographer: Shammi Mehra/AFP via Getty Images
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Narendra Modi’s steady conquest of India’s state governments and his drive to unify taxes across the country are fueling a new competition between provincial chief ministers for investment in factories, businesses and jobs that is redrawing the country’s industrial map.
The ruling Bharatiya Janata Party has extended control to a record 18 states, representing roughly 60 percent of India’s gross domestic product. That’s allowing Modi to erode decades of fighting between the central government and provincial leaders, who are responsible for everything from providing industrial land to law and order.