Thursday, April 9, 2009

Political campaigns suffer as India Inc tightens its purse strings

With a recession-hit India Inc tightening its purse strings, there has been a significant dip in corporate contributions to the election campaign chests of political parties. Estimates vary, but the consensus is that corporate donations are down by at least 20% this time.

The number of companies volunteering financial support has come down, while the others are reluctant to fully redeem their commitments. There are also those who have wriggled out of commitments, citing their plunging bottom line.

Political parties claim that the hit is bigger than what companies themselves say. Parties say corporate contributions are down 35%-40%, although industrialists insist that ''political demand is inelastic'', and despite these trying times, they have cut back by just 20%.

Said a senior Congress leader: ''We are having a tough time. These companies have to be reminded. Few are coming forward on their own.'' BJP sources agreed on the trend but righteously claimed that they could make do as they were not planning to run a lavish campaign.

Sources in the Samajwadi Party, which is known for its good links with industrial houses, also said corporate support was down 40% from the last time. ''But we will not be affected as we have committed supporters,'' claimed a SP leader.

Read the full article here.

No comments:

Post a Comment