India’s Shifting Political Landscape

Just weeks prior to the election that marked a setback for Narendra Modi in India, the elite gathered in Gujarat for what was described as “possibly the most extravagant pre-wedding ceremony the modern world has ever seen”. The occasion? The forthcoming marriage of Anant Ambani, youngest son of Mukesh Ambani, India’s wealthiest man.

In March, luminaries like Mark Zuckerberg, Bill Gates, and Ivanka Trump descended alongside entertainers Rihanna and Akon. Even the airport, usually reserved for military use, saw non-military jets land with special permissions, sparking controversy.

Critics like opposition leader Jairam Ramesh lambasted Modi’s willingness to assist his industrialist allies at any cost. This critique gains traction amidst reports that Modi’s decade-long rule has concentrated 40% of wealth among just 1% of the population, a statistic underscored by recent electoral losses.

Discontent has simmered for years, exacerbated by Modi’s attempts to remove price protections for small farmers, leading to widespread protests. Effigies of Modi and favored tycoons like Ambani were burned, symbolizing public ire.

Ambani, with a fortune rivaling US tech giants, benefitted from state support, especially in telecommunications. His friendly ties with successive Gujarat leaders contrast sharply with protests targeting another tycoon, Gautam Adani. Adani, who saw his fortune soar alongside Modi’s rise, epitomizes the nexus between business and politics under Modi’s tenure.

Adani’s supporters liken his impact to South Korea’s chaebol, promoting economic growth but exacerbating inequality. Despite India’s economic rise under Modi, critics argue it has worsened inequality to colonial-era levels, a point underscored by economists like Thomas Piketty.

Rahul Gandhi and the opposition have capitalized on this sentiment, deriding Modi’s government as a haven for the wealthy. Despite Modi’s resilience, accusations of cronyism gained traction, particularly in Uttar Pradesh, where anti-Muslim rhetoric failed to sway poorer voters struggling with job scarcity.

The electoral upset saw “Modi stocks” plummet, signaling potential challenges for tycoons like Adani. Modi now faces governing in coalition, necessitating concessions to allies and potentially reshaping economic beneficiaries nationwide.

As India navigates this political crossroads, the future holds uncertainties for both Modi and the entrenched business elite whose fortunes have intertwined with his governance.