Alliance between SP & BSP will be a 'dysfunctional marriage'

Policy landscape may get momentum and there might be some tough economic measures if BJP wins state polls, says Anil Padmanabhan, Deputy Managing Editor at Mint.

Ahead of the outcome of the UP election, Padmanabhan told CNBC-TV18 that the it would be a 'dysfunctional marriage' if Samajwadi Party (SP) and Bahujan Samaj Party (BSP) come together to form an alliance.

Below is the verbatim transcript of Anil Padmanabhan's interview to Latha Venkatesh & Sonia Shenoy on CNBC-TV18. Sonia: If the Bharatiya Janata Party (BJP) does go ahead and win in Uttar Pradesh, does it change the economic landscape for the country at all or do you think that most of their policies have already been established? A: The economic/policy landscape can give a kind of momentum but most of it as you said is already on course. The big thing is goods and services tax (GST) but there can be a backlash from losing political parties which is presumably why the PM said in the house that we need consensus on GST - and that could reverberate in GST council and the GST is not yet an open and shut case. There is still a last mile to do. So yes, it will give BJP and NDA a tremendous momentum but more politically than in terms of economic policy focus. Latha: If it were a landslide win like the way the Chanakya poll is indicating then it means that -- this is despite demonetisation so clearly that means that the National Democratic Party (NDA) has its pulse on the sentiment or at least the people are with them even in dramatic measures. Therefore, can we expect more dramatic steps maybe labour reform maybe more revolutionary strong word but maybe some dramatic changes to tax laws. Should we expect more earth shattering economic policies? A: That is a good call to make because this election will reinforce PM's risk taking abilities. He has been, as we have seen from 2013 onwards a consummate risk taker in politics and the demonetisation move was a big economic risk that he took. He actually risked social capital. So yes, I would think that he would now be more inclined to tougher measures because he now seems to have a direct dialogue with the people and if indeed all the results do pan out as exit poll seems to suggest then he has the pulse of the people like you say. Sonia: Do you think the Samajwadi Party (SP) and the Congress could tie-up with the Bahujan Samaj Party (BSP) to restrict BJP from forming a government in UP? A: This thing can come about only if it's a hung assembly and SP turns out to be the single largest part. I am little flummoxed as to even before the results have come, just on the base of exit polls that Akhilesh Yadav is making overtures to the BSP. It is actually a giveaway of the funk within your own self belief and to me it's too early and too speculative at this stage to look at it and in any case if it happens - politically it will be very powerful force if they come together but on the other side it will be like a dysfunctional marriage from day one.