The paradox of the BJP’s stance towards external economic liberalisation: why a Hindu nationalist party furthered globalisation in India Asia Programme Working Paper December 2004 By David P. Arulanantham, Oxford University Asia Programme Royal Institute of International Affairs Chatham House 10 St James’s Square London SW1Y 4LE United Kingdom Contact: Gareth Price, Head of Asia Programme,
[email protected] Chatham House is an independent body which promotes the rigorous study of international questions and does not express opinions of its own. The opinions expressed in this paper are the responsibility of the author. © Chatham House 2004. All rights reserved. 1 Summary This paper examines why the Hindu nationalist Bharatiya Janata Party (BJP) campaigned against policies favouring globalisation while in opposition during the early 1990s but aggressively pursued them while in power from 1998-2004. Despite the importance of international pressures and the “centrist pull” of the Indian political system, this paper explores the party’s ideological flexibility. The BJP comprises a pragmatic pro- capitalist wing and an ideological wing opposed to foreign involvement in the economy. As a result, the party employed economic nationalism to energise its activist base while it was in opposition. After winning the election, the pragmatic wing captured power within the party and implemented its agenda, reflecting the views of India’s emerging middle class. The paper concludes by assessing the future of economic reforms under a subsequent BJP