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The BJP's decisive victory in Maharashtra has provided a significant boost to Gautam Adani's $3 billion Dharavi redevelopment project, which aims to transform Asia's largest slum into a world-class district. The opposition, led by Uddhav Thackeray's Shiv Sena, had threatened to reclaim land allocated to Adani and scrap the project if they won. With the BJP and its allies securing over three-fourths of the assembly seats, concerns over the project's future have been alleviated.
Maharashtra, India"s economic hub, is set to hold local elections with 96.4 million registered voters casting ballots for 288 assembly seats. The elections are crucial for assessing support for Prime Minister Modi and his Bharatiya Janata Party, which has faced political instability in the state since 2022. Analysts emphasize the urgent need for a stable government amid ongoing crises.
The proposed Rs 4,000 monthly unemployment benefit in Maharashtra could lead states to spend an average of 0.7% of GDP on such payments, potentially exceeding the 3% fiscal deficit limit set by the finance commission. States like Bihar, Uttar Pradesh, and Rajasthan may face deficits over 5%, with Bihar projected to allocate 2.2% of its GDP for these benefits ahead of upcoming elections.
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