Evaluating the Impact of Coalition Governments on Environmental, Social, and Governance Issues in India

Introduction

India's political landscape is witnessing a significant shift with the formation of a coalition government after a decade of near-dominant BJP rule. Coalition governments are not new to India, but this transition raises questions about the potential implications for environmental, social, and governance (ESG) issues. This article explores whether coalition governments in India can positively impact these critical areas, weighing the pros and cons and projecting possible future outcomes.

Environmental Impact

One of the most pressing concerns for any government today is environmental sustainability, and for India, this concern is paramount. As the soon-to-be third-largest economy in the world and one of the biggest greenhouse gas emitters, India is under the global spotlight. India's commitment to achieving net-zero carbon emissions and its internal policies toward a sustainable future are under scrutiny.

During the BJP's decade-long rule, India saw significant infrastructure development, often at the expense of environmental degradation. The Yale-sponsored Environmental Performance Index (EPI) report placed India at the bottom among 180 nations in terms of ecosystem vitality, environmental health, and climate change. The fact that India slipped from a mid-ranking position in 2014 to near the bottom in 2024, despite having significant political freedom, indicates systemic issues.

Coalition governments, comprising multiple political parties, might bring diverse perspectives and innovative solutions to environmental challenges. However, the need for consensus among coalition partners can sometimes lead to compromised policies. A coalition government could potentially balance development with environmental conservation by incorporating diverse viewpoints.

Social Implications

Social issues in India are multifaceted, encompassing education, healthcare, and social justice. Coalition governments might offer more inclusive and representative policymaking, addressing the needs of various social groups. The previous decade under the BJP saw numerous social initiatives, but critics argue these were sometimes overshadowed by majoritarian policies.

India's population, as per UN estimates, has grown by 135 million in the last ten years and is expected to continue rising before it starts declining. This increase means greater demand for scarce resources and pressure to employ young people. While data suggests a rise in per capita and household incomes, these gains are offset by rising inflation, inequality, and a reduction in household savings. The real concern is whether India will reap the demographic dividend from its young population before the opportunity to become a developed nation slips away.

A coalition government, by virtue of its composition, might promote social harmony and inclusivity, although the necessity for compromise could dilute the impact of certain policies. The potential for increased checks on private enterprise and corporate wealth creation could have mixed implications.

Governance Challenges

Effective governance is crucial for the successful implementation of policies. Coalition governments often face challenges in governance due to the need for consensus among diverse political entities. This can lead to slower decision-making processes and potential policy gridlocks. However, the collaborative nature of coalition governments might also result in more transparent and accountable governance.

The BJP's centralized approach to governance facilitated swift policy decisions, but a coalition might foster a more democratic and participatory governance model. In the past, states under the federal constitution managed to accrue some benefits from tax collection and made necessary investments in their agendas. However, the last decade saw a departure from this model, not significantly benefiting the people. Increasing alienation of state and local bodies has hindered last-mile governance. A large country like India requires innovative services to aid the common man, and a coalition in governance could help, though its exact impact remains to be seen.

Future Projections

Looking ahead, the impact of coalition governments on ESG issues in India will depend on the ability of coalition partners to work together effectively. If managed well, coalition governments can bring about balanced and inclusive policies that address the needs of the environment, social sectors, and governance structures. However, the inherent challenges of coalition politics, such as the need for consensus and potential policy compromises, must be navigated carefully to ensure positive outcomes. The bureaucracy, as always, will play a pivotal role.

Conclusion

While coalition governments in India present both opportunities and challenges, their impact on environmental, social, and governance issues will ultimately depend on the ability of diverse political entities to collaborate and prioritize the nation's long-term welfare over short-term political gains. The next few years will be a critical period for observing how these dynamics play out compared to the previous decade of BJP rule.