Page 22 - DMGT401Business Environment

Unit 1: Indian Business Environment

All the State Parties, put together, could get only 27 seats in 1989 elections. They improved their Notes
tally to 51 in 1991 and 129 in 1996. But there was a decline in seat share to 101 in 1998 and
subsequently an increase to 158 in 1999. There was a corresponding increase in their vote share
also. In 1989 their vote share was 9.28 percent of the total valid votes polled. In 1991 they
improved by a clear 3.7 per cent in their vote share taking it to 12.98 percent. In 1996 elections
they got 22.43 percent of votes. In 1998 their vote share declined marginally to 18.79 percent but
increased again to 26.93 percent in the 1999 polls.
These Regional Parties not only share the Power at Centre but they also work as a Pressure
Group. They tries to impose their agenda on the national polices. In 1999 General Election
Congress Led Coalition came to power under the leadership of Mrs Sonia Gandhi and Dr.
Manmohan Singh became the Prime Minister of India. On the national level CPI supported the
Indian National Congress-led United Progressive Alliance government, but without taking
part in it. The party is part of a coalition of leftist and communist parties known in the national
media as the Left Front. Upon attaining power in May 2004, the United Progressive Alliance
formulated a programme of action known as the Common Minimum Programme. The Left
bases its support to the UPA on strict adherence to it. Provisions of the CMP mentions to
discontinue disinvestment, massive social sector outlays and an Independent Foreign Policy. It
is the pressure of CPI that Dr. Manmohan Singh has to apply break on his agenda of Disinvestment
and Privatization.
On July 08, 2008, Prakash Karat announced that left front is withdrawing its support over the
decision by the government to go ahead on the United States-India Peaceful Atomic Energy
Cooperation Act. At this moment Mulayam Singh Yadav led Samajwadi Party of Uttar Pradesh
came forward and extending its support to Congress. Thus the Central Govt. was on the mercy
of regional political parties having their own agenda and regional interest.
In 2009 people of India voted for stability. The people of India gave clear majority to the
Congress led Alliance that is UPA the other constituents of the UPA are
1. Dravida Munnetra Kazhagam
2. Nationalist Congress Party
3. Jharkhand Mukti Morcha

4. All India Majlis-e-Ittehadul Muslimeen
5. Republican Party of India (Athvale)

6. Sikkim Democratic Front
7. Indian Union Muslim League
8. Trinamool Congress
In totality this alliance won 262 Seats out of 543 seats. The Communist Party led Third Front
could manage only 80 seats. Most of them are of BJD in Orissa.
The 2009 Election clearly indicates that the pressure group politics of regional political parties is
over. In current political scenario can be marked by following facts:
1. Strong Presence of Indian National Congress at the National Level
2. Stable Government

3. Unanimity among the Political Parties on Economic Issues

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