Conducting simultaneous elections across India could significantly boost economic growth, improve the quality of government spending, and strengthen policy stability, senior economists told a Joint Parliamentary Committee (JPC) examining the One Nation, One Election (ONOE) proposal.
The committee, chaired by BJP MP PP Chaudhary, met on Tuesday to discuss the Constitution (One Hundred and Twenty-Ninth Amendment) Bill, 2024, and the Union Territories Laws (Amendment) Bill, 2024.
Experts highlighted that frequent elections create economic uncertainty and disrupt governance, with measurable macroeconomic costs.
Gita Gopinath, Professor of Economics at Harvard University and former First Deputy Managing Director of the International Monetary Fund, told the panel that election years are typically associated with slower private investment, higher primary fiscal deficits, and reduced capital expenditure. Citing empirical evidence, she said private investment tends to fall by about five per cent during election years and recovers only partially afterward.
Reducing the frequency of elections through ONOE, Gopinath said, could lower uncertainty, encourage private investment, and improve both the efficiency and composition of public spending. Referring to estimates by former Finance Commission Chairman NK Singh, she noted that these combined effects could raise GDP by around 1.5 per cent — equivalent to roughly Rs 4.5 lakh crore in additional economic output.
Gopinath also drew attention to the high cost of elections in India, especially when political party expenditure is included, describing ONOE as a broader macroeconomic reform rather than just an administrative change.
The panel also heard from Sanjeev Sanyal, Member of the Economic Advisory Council to the Prime Minister, who said that while cost savings are a benefit of simultaneous elections, they should not be the primary justification. He argued that staggered elections impose recurring economic costs by disrupting policy-making, enforcing the Model Code of Conduct repeatedly, and diverting political leadership toward constant campaigning.
According to sources, Sanyal said ONOE could improve coordination between the Centre and states, enhance governance stability, and support long-term decision-making by reducing frequent political disruptions.
The Joint Parliamentary Committee will continue consultations with economists, policymakers, and other stakeholders as it examines the proposed legislation on simultaneous elections.