Modi cuts LPG price, announces $15bn spending splurge
Business
Modi has made high growth, infrastructure development his key poll plank in his last two tenures
NEW DELHI (Reuters) – India has decided to reduce the cooking gas cylinder price by 100 rupees ($1.2), Prime Minister Narendra Modi said on Friday, a move seen as targeting women voters days before national elections are called.
The [LPG] price cut will "ease the financial burden on millions of households across the country", mainly benefiting women, Modi said in a post on messaging platform X on Women's Day.
More Indian women have started to vote for Modi's Bharatiya Janata Party (BJP) as a result of its focus on women welfare, including a free food plan and domestic benefits such as piped water, 24/7 electricity and a cooking gas connection.
A 14.2 kg cooking gas cylinder costs around 900 rupees ($11) in the capital Delhi.
Separately, the government on Thursday decided to extend its subsidy for low income households, after raising it two times last year to 300 rupees per liquefied petroleum gas (LPG) cylinder from 200 rupees earlier to rein in inflation.
$15 BILLION SPENDING SPLURGE
Modi approved $15 billion worth of infrastructure projects in the last week as he bolsters support days before the schedule for national elections is to be announced, but the opposition Congress party was unimpressed.
Between Monday and Wednesday, Modi visited the southern states of Telangana and Tamil Nadu and the eastern states of Odisha, West Bengal and Bihar, where he announced projects he hopes will help lift India from the world's fifth-largest economy to the third. He visits Assam on Saturday.
Modi has made high growth and infrastructure development his key poll plank in his last two tenures. He has promised to make India a developed country by 2047 from its current status of a low-middle income country.
Modi's spending projects come days before the election announcement, after which he will not be not be allowed to try to pull in voters with big schemes.
Modi has been criticised for high [Indian] unemployment [rate] and has announced targeted welfare schemes for women and farmers. The main opposition Congress has promised job guarantees if it comes to power and its chief spokesman questioned Modi's spending on infrastructure.
"Almost all the projects that he is inaugurating are either completions or expansions of projects that were in place before he became the prime minister," Jairam Ramesh said in a social media post. He called Modi a "conjurer of lies".
India is preparing to run the world's largest election by May with more than 960 million voters.
Modi's BJP is projected to win a third consecutive term comfortably, opinion polls suggest. If it does, Modi will become the first prime minister to win three straight terms since first Prime Minister Jawaharlal Nehru.
"It is not an election but a journey for blessings for development. We are inaugurating bridges, other infrastructure," senior BJP leader and eastern state of Assam Chief Minister Himanta Biswa Sarma told reporters.
The BJP has to secure 272 of 543 seats to form the government.
With 8.4 per cent economic growth in the three months to December, India has remained the fastest growing major economy in the world. Indian retail inflation remains within the central bank's target band of 2pc-6pc for most months.
"Despite global headwinds and heightened geopolitical uncertainty, Indian economic growth has been above 7pc," Paras Jasrai, economist at India Ratings, said.
Indian stock market has also hit record highs helped by the robust economy and weakness in China.
