Vivek's Commentary

The debate surrounding whether coalition or single-party governments are more conducive to economic growth is significant, particularly in a diverse country like India where regional interests and political diversity hold sway. Examining the performance of both types of governments through the lens of economic growth, as indicated by GDP and per capita GDP growth rates, provides valuable insights into their respective effectiveness. General Trends in Seat Share and Growth Rates:  The correlation between the seat share of the largest party in the Lok Sabha and economic growth rates reveals intriguing patterns. Notably, as the dominance of a single party increases, there tends to be a decline in both GDP and per capita GDP growth rates. This suggests that when power is concentrated in one party, economic growth may suffer. Conversely, optimal growth rates are observed when the largest party’s seat share falls within the range of 20% to 40%, typically associated with coalition governments