India’s ruling Congress party ousted in two states

INDIA: India’s ruling Congress party suffered a political setback on Tuesday when it was ousted from power in two northern states, amid mounting voter concern over rising inflation.

The defeats in Punjab and Uttarakhand states came one day before the government of Prime Minister Manmohan Singh was to unveil the country’s annual budget.

The state elections are seen as a dress rehearsal for federal elections which must be held by 2009, but Singh put up a brave front, saying the vote was not a reflection of disenchantment with his government.

“There is no question of a referendum against the central government. These elections are part of local elections,” Singh told reporters.

He conceded, however, that rising prices were a problem.

“I think, we will realise all the factors that contributed to this ... I do recognise that inflation is a problem. The government is trying to tackle it as best it can,” Singh said.

In Punjab, the national Bharatiya Janata Party (BJP)-led opposition alliance and the regional Shiromani Akali Dal party won 67 of the 117 provincial assembly seats, the Press Trust of India (PTI) reported.

Congress bagged 44 seats, while smaller parties won the six remaining seats. In neighbouring Uttarakhand state, Congress conceded defeat to the BJP, which had 34 of the 70 assembly seats one short of a majority. The Congress won 21, while smaller parties got the rest.

Congress was set to hold onto the remote northeastern state of Manipur, where it bagged 29 of the 60 seats, PTI reported.

Congress faces a slew of state elections in the coming months, including in the country’s most populous state of Uttar Pradesh, which is seen as politically pivotal.

Analysts blamed voter concern over high inflation and anti-incumbency factors for Congress’ poor showing.

“The Congress, which came to power nationally on the slogan of being with the people of India, seems to have gotten lost with inflation mounting to such levels,” said analyst Rasheed Kidwai.

Inflation is riding at 6.63 percent, driven by rising food bills. The rate, which is close to a two-year high, is far above the central bank’s tolerance level of 5.0 to 5.5 percent.

Punjab Chief Minister Amarinder Singh, who stepped down after it became clear that Congress had lost the election, said inflation had been a factor in the party’s poor showing.

New Delhi, Wednesday, AFP