Meenaz Munshi, Senior Associate at IDFC Institute, and Sanjay Pulipaka, analyse why this decisive move of demonetisation may force the BJP and regional parties to recalibrate their political strategies. 

"India’s political discourse was until recently dominated by identity issues such as cow protection, the uniform civil code, and debates on freedom of expression. Partial demonetisation has ensured a substantial shift in the political discourse to economic issues. Factions within political parties and some political parties that thrive on identity politics are on the back foot...

The partial demonetisation may negatively impact campaign spending in the poll-bound states of Punjab and Uttar Pradesh. In addition, the winter parliamentary session has a heavy legislative agenda. Parliamentary proceedings may get disrupted due to protests by opposition members over demonetization and important bills related to Goods and Services Tax (GST) may not get legislated...

...Already, West Bengal chief minister Mamata Banerjee reached out to her primary rival – the Communist Party of India, Marxist – to launch a nationwide political campaign. On the other hand, Chief Minister Nitish Kumar of Bihar – a key opponent of Modi – supported the demonetisation policy, indicating the possibility of substantive political realignments..."

Read the full blogpost in cogitASIA here.