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Experts Back ONOE: How One Nation, One Election Could Boost GDP by 1.5%

Top economists have thrown their weight behind the idea of holding simultaneous elections across India. They argue that frequent polls disrupt the economy by delaying investment and government spending. The reform could lead to massive savings and a significant boost to the country's GDP. The parliamentary committee is now considering these expert views before making its final recommendation.

Key Points: Gita Gopinath, PM-EAC Back One Nation One Election for Economic Gains

  • Gita Gopinath estimates ONOE could increase India's GDP by 1.5%, or about ₹4.5 lakh crore
  • Election years see a 5% decline in private investment and reduced government capital expenditure
  • Sanjeev Sanyal highlights high costs from policy disruptions and repeated Model Code of Conduct periods
  • The Law Commission has stated the ONOE bill does not violate the Constitution's basic structure
2 min read

Experts back simultaneous polls, say ONOE could bring in significant macroeconomic reform

IMF's Gita Gopinath and PM-EAC's Sanjeev Sanyal tell JPC that simultaneous polls could raise GDP by 1.5%, cut costs, and ensure policy stability.

"ONOE would deliver significant economic gains by reducing elections, calling it a positive macroeconomic reform. - Sources on Gita Gopinath's view"

New Delhi, December 17

The Joint Parliamentary Committee (JPC) on One Nation One Election (ONOE) met on Wednesday, led by Bharatiya Janata Party (BJP) MP and chairman PP Chaudhary.

Former Deputy Managing Director of the International Monetary Fund (IMF) Gita Gopinath, along with a member of the Prime Minister's Economic Advisory Council (PM-EAC), presented their views to the panel, with members across party lines receiving constructive feedback on the reform.

Sources told ANI that Gopinath, a Harvard University Professor, said ONOE would deliver significant economic gains by reducing elections, calling it a positive macroeconomic reform.

She highlighted that election years see delayed private investment (approximately 5% decline), higher primary deficits, and reduced capital expenditure. Sources said Gopinath estimated that the election reform could increase GDP by 1.5% (₹4.5 lakh crore) and reduce election-related expenditure.

Sanjeev Sanyal, Member of the PM-EAC, highlighted that One Nation One Election (ONOE) would reduce costs by lowering election frequency. However, he emphasised that monetary savings aren't the primary reason for ONOE. Instead, staggered elections impose high economic costs due to policy disruptions, leadership distraction, and repeated Model Code of Conduct violations.

ONOE would ensure policy continuity, allow simultaneous discussion of Union and State issues, and enhance governmental stability, thereby strengthening long-term planning, according to sources mentioned.

Earlier, on December 11, Senior Advocate and former Union Minister Kapil Sibal presented his views to the JPC, emphasising that the rights of states should be accorded due prominence.

Earlier this month, the Law Commission of India approved the One Nation One Election (ONOE) Bill, stating that it doesn't violate the Constitution's basic structure.

The experts, including the Chairman of the Law Commission, discussed various issues for about three hours.

"All the members asked for clarification, and then everything will be considered, and the committee will make its recommendation," Chaudhary had told ANI.

"This subject of One Nation, One Election is in the interest of the country because it will solve many problems, whether it's the economic aspect or governance. So the committee is giving everyone a lot of time to present their views," he added.

The JPC is currently reviewing the Constitution (129th Amendment) Bill, 2024 and the Union Territories Laws (Amendment) Bill, 2024. These Bills, introduced on December 17 in the Lok Sabha last year and sent to the JPC for further scrutiny, collectively aim to introduce simultaneous elections across the country.

- ANI

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Reader Comments

P
Priya S
While the economic arguments are strong, I hope the committee seriously considers Kapil Sibal's point about states' rights. Federalism is the bedrock of our democracy. ONOE shouldn't become a tool to centralize power. The implementation must be balanced. 🤔
R
Rohit P
Finally! The Model Code of Conduct halts everything for months. No new projects, no transfers, just pure politics. If ONOE can reduce this policy paralysis and save ₹4.5 lakh crore, it's a no-brainer. Let's get it done.
S
Sarah B
Interesting analysis. The point about delayed private investment is crucial. Investors hate uncertainty. Having a predictable, consolidated election cycle could make India a much more attractive destination for long-term capital. Good move.
K
Karthik V
I have my doubts. What if a state government collapses mid-term? Will we have President's rule for years until the next synchronized election? The logistical and constitutional challenges seem enormous. The cost savings can't come at the expense of democratic health.
M
Meera T
As a small business owner, I see my sales dip every time there's an election nearby. The constant campaigning and code of conduct disrupt normal life. One major election every 5 years sounds peaceful and productive. Hope they find a practical way to implement it! 👍

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