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Subject

Agitations in India to create new states.

Significance

Home Minister Rajnath Singh last month negotiated an end to a 104-day protest by the Gorkha Janmukti Morcha (GJM), which had sought the excision of a separate Gorkhaland from West Bengal state. India’s governing Bharatiya Janata Party (BJP) has historically been a strong advocate of state-led development and even new states, but its willingness to redraw the map of India is declining.

Impacts

Darjeeling’s tea industry may continue to suffer losses in the short term but will recover thereafter.

The Goods and Services Tax (GST) should improve states’ fiscal balances in the long term.

The BJP may step up efforts to promote the Hindi language across India.

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