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Union Finance and Corporate Affairs Minister Nirmala Sitharaman on Saturday dismissed the false propaganda surrounding the 'One Nation, One Election' concept, clarifying that it will not be implemented in the upcoming elections. Speaking at an event near here, she noted that around Rs 1 lakh crore was spent during the 2024 Lok Sabha elections, and such a massive expenditure could be saved through simultaneous elections. "If simultaneous elections are held for electing the members of Parliament and Assembly, about 1.5 per cent growth will be added to the country's GDP. In value terms, Rs 4.50 lakh crore will get added to the economy. This is a black and white example of One Nation One Election' concept", she said. Sitharaman accused certain parties of "spreading a false campaign" on the 'One Nation One Election' initiative, blindly opposing it. She clarified that simultaneous polls are planned to take place only after 2034 and the groundwork is being laid now for the then President to give his assent. "This concept was widely discussed on several occasions. It was not something introduced by the Prime Minister Narendra Modi. This' One Nation One Election' was in existence till the 1960s. Instead of blindly opposing it, if it has been supported considering its benefit, the 'One Nation One Election' concept will make the country move forward," the union minister remarked. Sitharaman claimed that the late DMK Patriarch M Karunanidhi had supported the 'One Nation One Election' concept, but his son and the current Chief Minister (M K Stalin) is not following in his father's footsteps and instead opposing it. Sitharaman reiterated that the 'One Nation One Election' concept was not someone's "pet" project, but has been planned considering the welfare of the country. In her about 30 minute speech, the Union Minister clarified that simultaneous polls refers to conduct of Parliamentary and Assembly polls and not local body elections. "There has been talk that simultaneous polls referring to elections will be conducted even at that Municipality level. It is not. It only pertains to the conduct of Parliamentary and Assembly polls together" she said. She recalled that in the 1961-1970s three elections were conducted within 10 years in five states, including Kerala, Uttar Pradesh, Punjab, Bihar and West Bengal. Again, in the 1971 to 1980s, four elections were conducted in more than 14 States within 10 years. Drumming up support for ONOE, Sitharaman said frequent conduct of Parliamentary and Assembly polls disrupts public welfare administration and affects developmental activities when the Model Code of Conduct is enforced. "For example, even if an ambulance has to pass through a vital road, if the road has been laid but was not inaugurated due to implementation of model code of conduct, in view of elections, it gets affected," she said. She clarified that she was not opposed to the implementation of Model Code of Conduct (MCC) but at the same time, a project gets stalled and one has to wait until the MCC is lifted. Another important aspect of holding simultaneous polls is that nearly Rs 12,000 crore would be saved to the exchequer, she said and added that such a huge sum can be used for various people welfare schemes instead of spending in elections. "A Parliamentary Standing Committee comprising MPs from all the parties participated in a discussion on simultaneous polls and recommended it and again in 2018, Niti Ayog suggested conducting One Nation, One Election concept," she said. In 2019, another all party meeting was convened on holding One Nation, One Election in which out of 19 political parties, 16 of them approved it while CPM, RSP and AIMIM from Hyderabad opposed it. Sitharaman also referred to deployment of para-military forces as in the 2019 elections, several lakhs of personnel were involved in poll related activities instead of carrying out their regular work while 25 lakh election administrative officials participated in the conduct of the polls in 12 lakh booths. With the implementation of One Nation, One Election, voter percentage would also increase in states, she added.

After a brief return of optimism in March, foreign institutional investors (FIIs) reversed course and turned net sellers in early April, rattled by a sudden escalation in global trade tensions. The trigger came on April 2, when U.S. President Donald Trump announced steep reciprocal tariffs, prompting a sharp correction in global equity markets and reigniting fears of inflation and stagflation in the United States. This shift in sentiment led to massive selling across key indices, with spillover effects reaching emerging markets like India.The impact was swiftly reflected in FPI flows, which saw net outflows of over Rs 10,000 crore from Indian markets by April 5. While this marks a sharp contrast from the buying trend seen just weeks earlier, analysts remain divided on the outlook. While global uncertainty has put FPIs in a wait-and-watch mode, India’s robust macroeconomic fundamentals and supportive policy environment continue to offer long-term investment appeal, especially in comparison to other Asian peers.Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, directly highlighted this shift, saying, "The trend of FPIs turning buyers in March changed in early April when FPIs turned sellers again." The trigger came on April 2, when President Trump announced reciprocal tariffs, leading to a major trend reversal in global stock markets.The scale of the tariffs exceeded expectations. "The 10% base line tariff on all imports, the 25% tariff on all automobile imports and steep reciprocal tariffs on most countries" are, as Vijayakumar noted, expected to raise inflation in the US. He warned of broader economic risks, stating, "There are concerns that the US economy might even slip into stagflation."This led to massive selling in the US markets where S&P 500 and Nasdaq lost above 10% in two days.The fallout was not limited to the West. China’s swift response has escalated tensions further. "The Chinese retaliation to US tariffs has been quick," he observed, adding that "a full blown trade war will impact global trade and global economic growth." For now, he believes foreign investors are hesitant: "FPIs are likely to be in a wait and watch mode before turning buyers." As of April 5, "the total FPI selling in India stood at Rs 10,354 crores."Despite this cautious global backdrop, Manoj Purohit, Partner & Leader, FS Tax, Tax & Regulatory Services at BDO India, remains optimistic about India’s ability to attract foreign capital over the longer term. He pointed out that, "With the beginning of the new financial year, optimism is high for both India and FPIs on the reviving market."India, he noted, continues to hold strong appeal for global investors, thanks to its economic resilience and policy consistency. "India remains an attractive destination for attracting global capital," he said, adding that the recent US tariffs on Indian goods are relatively modest as compared to other Asian countries, providing India a strong proposition to offer viable export opportunities.Purohit highlighted India’s position as one of the fastest-growing economies supported by a vast consumer market, skilled workforce, and business-friendly reforms.The RBI’s decision to maintain bond and G-sec limits for FPIs is also seen as a positive signal. "The recent move by RBI... is a testimony of the government’s intent to keep gateway open for offshore participants," he added.While near-term volatility persists due to global developments, both analysts suggest that India's economic fundamentals, infrastructure push, and diversifying trade strategy offer a compelling case for long-term investment. Purohit summarized this by saying, "The Indian economy currently seems well insulated to survive temporary headwinds on account of macro changes and domestic triggers of high valuation, tight earnings, and rising inflation costs."As the markets now look to the RBI’s upcoming policy stance and the evolving tariff landscape, investor sentiment remains delicately balanced between caution and long-term confidence.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)