India’s political arena: A playground for the rich

Rising costs shut out true representation

The influence of wealth over politics in India has escalated rapidly. With costs now running into millions of rupees every month just to remain active and hundreds of millions more to contest elections, politics is increasingly becoming a privilege of the rich. This shift not only excludes genuine, grassroots leaders from the process but also fuels corruption and reduces public trust in elected officials.

India is often described as the world’s largest democracy, where people from all backgrounds have the right to vote and run for office. With a population of over 1.5 billion, the Indian democratic system is vast and highly diverse.

However, there is growing concern about the increasing cost of being involved in politics. A recent report by the Observer Research Foundation (ORF), a think tank, highlights how expensive it has become to pursue a political career in India. The report suggests that the high costs are making it difficult for ordinary citizens to take part in the political process.

According to the ORF report, titled The Cost of Politics in India, aspiring politicians need to spend at least INR 300,000 to 400,000 per month just to stay active and visible in their communities. This spending begins well before any official election campaigning starts. It often includes attending social events such as weddings, funerals, and religious functions, as well as offering financial help to local party workers and community members.

The report further reveals that gaining a nomination from a political party, especially in regional or state-based parties, is not always based on merit or grassroots support. In many instances, candidates are expected to make large financial contributions to the party fund in exchange for a ticket.

In some states, particularly in southern India, such contributions can range between INR 30 to 40 million. This trend has led to what the report calls the “oligarchisation of democracy”, where wealth becomes a deciding factor for who can enter the political arena, shutting out competent individuals who lack financial backing.

Campaigning for office: A multi-million affair

Once the nomination is secured, actual campaign costs rise even further. For a Lok Sabha election, the ORF estimates that serious contenders typically spend between INR 50 to 100 million. In more affluent states like Tamil Nadu, Andhra Pradesh, Telangana and Maharashtra, this figure can go much higher, sometimes crossing INR 1 billion per candidate.

Data from the Centre for Media Studies supports this finding, estimating that total spending in the 2024 general election reached a staggering INR 1,350 billion, nearly double of what was spent in the 2019 elections. These figures place Indian elections among the most expensive in the world.

Such high financial stakes have deep and troubling consequences for the democratic process. First, they create a barrier for ordinary citizens, particularly women, youth and those from marginalised communities, who simply cannot afford to participate.

As a result, politics increasingly becomes a space dominated by businesspeople, wealthy individuals, and those with personal or family fortunes. This limits diversity in representation and distances elected officials from the realities of the common people.

“High costs do refrain the citizens from entering politics. This is because ordinary citizens have to maintain their livelihood as a priority rather than giving themselves for service to society.  Their present and future is in stake with their limited funds.  In this scenario joining politics with a huge stash of funds as upfront fees is beyond any ordinary citizen’s purview. Cost of living plays a pivotal role in their entering politics or continuing with day to day livelihood,” Neela Ganguly, Assistant Professor & Head Programme of Political Science, Guru Nanak College, Chennai tells Media India Group.

Secondly, the need for massive funding often pushes candidates and parties towards large private donors. A significant portion of political donations in India still comes from anonymous or opaque sources.

“Big bucks provide easier access to government operations. They may or, in many cases, not influence policy decisions after elections. Some influencers do have their impact made post elections in terms of respective field policies,” adds Ganguly.

Although electoral bonds, once introduced as a tool for cleaner funding, were recently struck down by the Supreme Court due to transparency concerns, many experts believe that party funding remains one of the least transparent aspects of Indian politics. When candidates are dependent on wealthy backers, there is always a risk of political favours being exchanged for financial support. This link between money and influence weakens governance and opens the door to corruption.

Another worrying trend is the widespread use of money to influence voters. Reports from various states suggest that in many areas, candidates routinely spend millions of rupees on voters, offering gifts, cash, liquor or other incentives to secure votes. In some constituencies, per-voter spending has been reported at INR 5,000 to 7,000.

To address this growing crisis, the ORF and other experts have recommended urgent reforms. These include stricter enforcement of the existing expenditure limits for candidates, which are currently set at INR 9.5 million for Lok Sabha seats and INR 4 million for state assemblies in larger states.

However, these limits are rarely observed in practice. Another major loophole is that there is no spending cap for political parties themselves, allowing them to channel vast sums into campaigns without clear accountability.

“This activity has been in vogue for a long time. Not sure if this will ever be cleansed. Until complete service oriented, educated citizens come to politics, money is here to stay for campaign spending so as to establish themselves in the citizens’ midst. The politicians who have come to the fray spending money more than their value are sure to do everything possible to get back what they have invested. Thus unaccounted money earned for services rendered without proper approval or black money, is here to stay and it will be too very difficult to wipe it out of our political system,” says Ganguly.