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Modi Cabinet Approves ‘One Nation One Election’: Know How Will it Impact Business and Economy

One nation, one election is likely to be introduced in the parliament in the winter session

Prime Minister Narendra Modi Cabinet has given nod to One Nation One Election on Wednesday. The move follows from the recommendations made by a high-level committee chaired by former President Ram Nath Kovind that submitted its report in March this year. 

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“The Union Cabinet, chaired by the Prime Minister Narendra Modi, has accepted the recommendations of the High-level committee on simultaneous elections under the chairmanship of former President Ram Nath Kovind,” said a press release on September 19. 

The move is a blow to many who have been opposing the idea and a relief to others who for long have been citing benefits of conducting parallel polls. 

What is one nation, one election? 

One nation, one election means that the elections to Lok Sabha, legislative assemblies of all states, and urban and rural local bodies, including municipalities and panchayats, will be held at the same time.  

Under the present system, elections for Lok Sabha and state assemblies are conducted independently. Elections take place, either upon the completion of a five-year term  

How will ‘One Nation, One Election’ impact businesses and the economy? 

According to a Niti Aayog report, it is estimated that holding the elections together could result in savings ranging somewhere between Rs 7,500 crore to Rs 12,000 crore. 

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The industry bodies Federation of Indian Chambers of Commerce and Industry (FICCI) has outlined to the high-level committee the slowdown of businesses because of multiple elections. 

“Our ease of doing business is getting significantly constrained by multiple elections at various times at various levels. With multiple codes of conduct for these elections, the inevitable slowdown in decision-making by the government hurts business and industry badly. This also discourages necessary reforms to be carried out by various governments,” TOI reported citing FICCI general secretary Shailesh Pathak. 

CII reportedly has highlighted that the model code of conduct adversely hinders infrastructure projects. Additionally, it also disrupts government activities as employees are engaged in the election process for nearly two-three months.  

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