The Left is directed against the Congress, mainly over the Indo-US nuclear deal in the next few months, responding to the deadline pressures being mounted by the Bush Administration. The Leftists parties have also begun efforts to bring about a new secular political formation opposed to both Congress and BJP, which has lately energized itself to take head on the Congress-led UPA and is firing all its propaganda guns.

The year, 2008 would be politically a tumultuous year coinciding with a slowing economy, surge in inflation from globally soaring oil and food prices, and exposure to possible spill-over’s from the US-led world economic downturn and financial market turmoil’s. Politics will overshadow the economy with what looks like the onset of the election season even if growth is maintained on a moderate pace, with the entire stimulus provided by the budget for demand and investment.

The BJP-led NDA has begun to prepare for the electoral battle while possible realignments are being attempted by regional parties which came together last year to form a third front. The Left is exploring the prospects of a Third Alternative including parties like the ruling DMK in Tamil Nadu, a major constituent of UPA. In Tamil Nadu, a crucial state for Congress fortunes in alliance with DMK, the Democratic Progressive Alliance (DPA) led by DMK comprising the Congress, PMK and CPI (M) and CPI has become a house divided against it. While the Congress appears to have put aside its grievances against DMK for not sharing power, keeping in view the importance of DMK alliance for the Congress-led governance at the Centre, PMK, the 18-member group, has long been on a verbal duel with the Chief Minister on most issues of policy.

The timing of the Lok Sabha election is in the hands of the Congress leadership which itself is still weighing the possibilities, not being sure of its return without sufficient preparations and giving some time for its recent inclusive growth initiatives to work themselves out. State elections in the North will also have to be kept in view.

BJP was caught off-guard by the populist Rs.60, 000 crore of debt waiver and relief in the budget. It is picking holes in the new debt-write off proposal in regard to ways of meeting the liability and yet contends that all loans of farmers from money-lenders should have been covered, a line taken by former Finance Minister Mr. Yashwant Sinha who faulted the budget for not indicating the source of funding. BJP has set up a panel under him to suggest a counter-proposal more appealing to farmers, as its election gambit.

The loan waiver and debt relief scheme having been announced, the gains thereof should be consolidated by modifying the definition of small and marginal farmers. While all this warming up is happening around to strengthen the vote banks one has to wait and watch for what actually happens in the elections for nothing can be said for now as you never know what might happen in politics?