Applications for the LAMP Fellowship 2025-26 will open on December 1, 2024. Sign up here to be notified when applications open.

Yesterday, the BJP announced its candidate for the upcoming election of the President, which is scheduled to be held on July 17.  In light of this, we take a look at the manner in which the election to the office of the President is conducted, given his role and relevance in the Constitutional framework.

In his report to the Constituent Assembly, Jawaharlal Nehru had explained, “we did not want to make the President a mere figurehead like the French President.  We did not give him any real power but we have made his position one of great authority and dignity.”  His comment sums up the role of the President as intended by our Constitution framers.  The Constituent Assembly was clear to emphasise that real executive power would be exercised by the government elected directly by citizens.  It is for this reason that, in performing his duties, the President functions on the aid and advise of the government.

However, it is also the President who is regarded as the Head of the State, and takes the oath to ‘protect and defend the Constitution and law’ (Article 60 of the Constitution).  In order to elect a figure head who would embody the higher ideals and values of the Constitution, the Constituent Assembly decided upon an indirect method for the election of the President.

The President is elected by an Electoral College.  While deciding on who would make up the electoral college, the Constituent Assembly had debated several ideas.  Dr. B.R Ambedkar noted that the powers of the President extend both to the administration of the centre as well as to that of the states.  Hence, in the election of the President, not only should Members of Parliament (MPs) play a part, but Members of the state legislative assemblies (MLAs) should also have a voice.  Further, in relation to the centre, some members suggested that the college should comprise only members of the Lok Sabha since they are directly elected by the people.  However, others argued that members of Rajya Sabha must be included as well since they are elected by members of directly elected state assemblies.  Consequently, the Electoral College comprises all 776 MPs from both houses, and 4120 MLAs from all states.  Note that MLCs of states with legislative councils are not part of the Electoral College.

Another aspect that was discussed by the Constituent Assembly was that of the balance of representation between the centre and the states in the Electoral College.  The questions of how the votes of MPs and MLAs should be regarded, and if there should be a consideration of weightage of votes were raised.  Eventually, it was decided that a ‘system of Proportional Representation’ would be adopted, and voting would be conducted according to the ‘single transferable vote system’.

Under the system of proportional representation, the total weightage of all MLA votes equals the total value of that of the MPs.  However, the weightage of the votes of the MLAs varies on the basis of the population of their respective states.  For example, the vote of an MLA from Uttar Pradesh would be given higher weightage than the vote of an MLA from a less populous state like Sikkim.

Under the single transferable vote system, every voter has one vote and can mark preferences against contesting candidates.  To win the election, candidates need to secure a certain quota of votes.  A detailed explanation of how this system plays out is captured in the infographic below.

IG

Sources: Constitution of India; ECI Handbook; PRS.

Coming to the Presidential election to be held next month, the quota of votes required to be secured by the winning candidate is 5,49,452 votes.  The distribution of the vote-share of various political parties as per their strength in Parliament and state assemblies looks like this:

 

 

  • As shown in the infographic, the NDA and its allies approximately have 48% of the vote share.
  • This includes parties like the BJP, Telugu Desam Party (TDP), Shiv Sena, Shiromani Akali Dal, among others.

 

Note that the last date for filing nominations is June 28th.  In the next few days, political parties will be working across party lines to build consensus and secure the required votes for their projected candidates.

[The infographic on the process of elections was created by Jagriti Arora, currently an Intern at PRS.]

After months of discussion,  the issue of FDI in retail is being deliberated in the Lok Sabha today.  In September 2012, the Cabinet had approved 51% of FDI in multi-brand retail (stores selling more than one brand).  Under these regulations, foreign retail giants like Walmart and Tesco can set up shop in India.  Discussions on permitting FDI in retail have focused on the effect of FDI on unorganised retailers, farmers and consumers. Earlier, the central government commissioned the Indian Council for Research on International Economic Relations (ICRIER) to examine the impact of organised retail on unorganised retail. The Standing Committee on Commerce also tabled a report on Foreign and Domestic Investment in the Retail Sector in May, 2009 while the Department of Industrial Policy and Promotion (DIPP) released a discussion paper examining FDI in multi-brand retail in July, 2010.  Other experts have also made arguments – both in support of, and in opposition to, the move to permit FDI in retail sales. The table below summarises some of these arguments from the perspective of various stakeholders as collated from the above reports examining the issue.

Stakeholder

Supporting arguments (source)

Opposing arguments (source)

Unorganised retail
  • No evidence of impact on job losses (ICRIER).
  • The rate of closure of unorganised retail shops (4.2%) is lower than international standards (ICRIER).
  • Evidence from Indonesia and China show that traditional and modern retail can coexist and grow  (Reardon and Gulati).
  • Majority of small retailers keen to remain in operation even after emergence of organised retail (ICRIER).
  •  Unorganised retailers in the vicinity of organised retailers saw their volume of business and profit decline but this effect weakens over time (ICRIER).
  • Other studies have estimated that traditional fruit and vegetable retailers experienced a 20-30% decline in incomes with the presence of supermarkets (Singh).
  • There is potential for employment loss in the value chain. A supermarket may create fewer jobs for the volume of produce handled (Singh).
  • Unemployment to increase as a result of retailers practicing product bundling (selling goods in combinations and bargains) and predatory pricing (Standing Committee).
Farmers
  • Significant positive impact on farmers as a result of direct sales to organised retailers.  For instance, cauliflower farmers receive a 25% higher price selling directly to organised retailers instead of government regulated markets (mandis).  Profits for farmers selling to organised retailers are about 60% higher than when selling to mandis (ICRIER).
  • Organised retail could remove supply chain inefficiencies through direct purchase from farmers and investment in better storage, distribution and transport systems.  FDI, in particular, could bring in new technology and ideas (DIPP).
  •  Current organised retail procures 60-70% from wholesale markets rather than farmers. There has been no significant impact on backend infrastructure investment (Singh).
  • There are other issues like irrigation, technology and credit in agriculture which FDI may not address (Singh).
  • Increased monopolistic strength could force farmers to sell at lower prices (Standing Committee).
Consumers
  • Organised retail lowers prices. Consumer spending increases with the entry of organised retail and lower income groups tend to save more (ICRIER).
  • It will lead to better quality and safety standards of products (DIPP).
  •  Evidence from some Latin American countries (Mexico, Nicaragua, Argentina), Africa (Kenya, Madagascar) and Asia (Thailand, Vietnam, India) reveal that supermarket prices for fruits and vegetables were higher than traditional retail prices (Singh).
  • Even with lower prices at supermarkets, low income households may prefer traditional retailers because they live far from supermarkets, they can bargain with traditional retailers and buy loose items (Singh).
  • Monopolistic power for retailers could result in high prices for consumers.

Source: ICRIER [1.  "Impact of Organized Retailing on the Unorganized Sector", ICRIER, September 2008]; Standing Committee [2.  "Foreign and domestic investment in retail sector", Standing Committee on Commerce, May 13, 2009]; Singh (2011) [3. "FDI in Retail: Misplaced Expectations and Half-truths",  Sukhpal Singh, Economic and Political Weekly, December 17, 2011];  Reardon and Gulati (2008)  [4. "Rise of supermarkets and their development implications," IFPRI Discussion Paper, Thomas Reardon and Ashok Gulati, February 2008.]; DIPP [5. "Discussion Paper on FDI in Multi-brand Retail Trading", Department of Industrial Policy and Promotion, July 6, 2010]