Recently the world witnessed the biggest festival of democracy, the Indian General Election to Parliament. The election and its campaign were conducted over three months in seven phases, where over 8,000 candidates contested for 543 seats in the Lok Sabha. The election saw a record 910 million eligible voters, making it the largest democratic exercise globally. The declaration of the results determined the composition of the 18th Lok Sabha and was followed by the swearing-in of the council of ministers.

But this blog is not about the politics of the 2024 General Election. I want to share thoughts about the event’s impact on rural businesses.

Elections to Parliament play a crucial role in shaping a country's economic landscape. They influence various sectors, including rural businesses. Conducting general elections can have several direct and indirect benefits for rural enterprises. Also, the government often announces policy changes and freebies before the Election Commission’s cutoff date.

During election campaigns, there is a surge in economic activities as political parties spend heavily to carry their message to their electorate. This spending includes purchasing goods and services from local businesses, such as printing materials, transportation, catering, and accommodation. Rural businesses, especially small-scale vendors and service providers, benefit from this increased demand. The logistics of organizing election rallies, setting up campaign offices, and other related activities create temporary jobs for rural residents. This influx of jobs provides additional income, often spent locally, further boosting rural businesses. Candidates encourage local sourcing of materials and products to benefit rural businesses by increasing demand for locally produced goods. This helps the candidates get into the good books of the rural electorate and can stimulate growth and development in the rural business sector.

During the campaigns, political candidates often promise to improve rural infrastructure, including roads, bridges, and telecommunications, to win votes. Once elected, fulfilling these promises becomes crucial. Improved infrastructure enhances connectivity, having a long-term effect on rural businesses accessing markets, transporting goods, and receiving supplies. In this context, it is critical to note that promises related to electrification and better water supply systems are common during elections. When these promises are fulfilled, rural businesses benefit from a more reliable supply of electricity and water, essential for manufacturing and other business operations.

The economic stimulus from campaign spending, improved infrastructure, favorable policies, and enhanced market access all contribute to the growth and development of rural enterprises. The social and economic stability fostered by successful elections also creates a conducive environment for business operations. Addressing the specific needs and challenges of rural businesses through general elections plays a vital role in strengthening the rural economy and promoting sustainable development.

Elections promote community engagement and participation in the democratic process. This heightened sense of involvement and unity can translate into better collaboration among rural businesses, leading to the formation of business associations that can lobby more effectively. These enhanced networks can facilitate business revenue, knowledge sharing, and mutual support among rural entrepreneurs, contributing to the overall growth of the rural economy.