Global Journal of Management and Business Research, B: Economics and Commerce, Volume 22 Issue 4

states. Political stability is measured by constructing an index by using the following variables. a. General Elections and Raya Sabha Elections: (India level) Absolute Concentration of Power in Lok Sabha: Concentration of power is the number of seats that a party wins from the total seats in the House. It is also the proportion of seats that the major party or the alliance enjoys in the House (Salvi, 2005; Younis et al, 2008; Bernal-Verdugo et al, 2013). Absolute Concentration of Power is the number of seats that a party/alliance – ruling or opposite – wins in proportion to the total number of seats in the House. Absolute Concentration of Power is measured with respect to ruling party/alliance as well as opposition party/alliance. Absolute Concentration of Power (A1) is given as below: India enjoyed single party government till 1989 election where the Congress was the only and major ruling party at the Centre. After 1989 election, the era of coalition governments dawned upon Indian politics. Thus, the number of seats that major ruling party (MRP) along-with the coalition parties that it has partnered with (Ruling Alliance) in proportion to the total number of seats in the House is called as Absolute Concentration of Power (ACP). The Absolute Concentration of Power of the Ruling Party/Alliance variable (A1) is essential to measure political stability as it judges the ability/strength of the Ruling Party to pass a law in the Parliament. On the other hand, the Absolute Concentration of Power of the Opposition party/alliance variable (A2) helps to judge the strength of the opposition/hurdle that the government faces in passing of the Bill. Thus, for Ruling Party/Alliance, Absolute Concentration of Power (A1) is given as: For Opposition Party/Alliance, Absolute Concentration of Power (A2) is given as: For example, in 1984 Lok Sabha General Election, the Congress party won absolute majority in the House. It won 404 seats out of 514 seats. There was no alliance formed. Hence, Congress was the major ruling party. The Ruling Alliance’s Absolute Concentration of Power (A1) is given as 66.37 percent. (404/514*100=0.6637*100=66.37 percent) This shows that the government at the Centre is strong enough and stability can be sustained. Higher the value of A1, better is the political stability. Therefore, A1 has a positive relationship with political stability as government formed will be stronger. Figure 1: India mean chart of A1-LokSabha In 1984 election, the major opposition party (BJP) won only 22 seats. Whereas, the opposition coalition parties won 55 seats. Hence, a coalition of opposition parties was formed (22+55=77seats). The Opposition Alliance’s Absolute Concentration of Power (A2) is given as 14.98 percent (77/514*100 =0.1498*100=14.98 percent). This shows that opposition is weak enough to stall/halt the daily working and decision-making of the Parliament. This ensures more political stability. Lower the value of A2, better is the political stability. Therefore, A2 has a positive relationship with political stability as opposition will be weaker, not affecting the longevity or continuity of policies and also, of the government formed. 66.73 66.73 66.73 78.60 78.60 78.60 78.60 78.60 53.31 53.31 49.52 49.52 49.52 49.52 49.52 59.12 59.12 51.29 55.99 55.99 55.99 55.99 55.99 51.38 51.38 51.38 51.38 51.38 59.48 59.48 59.48 59.48 59.48 61.92 61.92 61.92 61.92 59.43 40 45 50 55 60 65 70 75 80 85 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 Average Abosulte Concentration of Power - Ruling Alliance (A1-Lok Sabha) LA1 MEAN Absolute Concentration of Power = ℎ 100 ACP (A1) = / ℎ 100 ACP (A2) = / ℎ 100 How Political Stability Affects Economic Growth in India 24 Global Journal of Management and Business Research Volume XXII Issue IV Version I Year 2022 ( ) B © 2022 Global Journals