Elections in 2 Indian states are seen as a test of Prime Minister Modi's popularity

NEW DELHI (AP) — Millions of people are voting in state elections in Maharashtra, India’s western industrial hub, and the mineral-rich eastern province of Jharkhand on Wednesday, in a test of the popularity of Prime Minister Narendra Modi’s Hindu nationalist party and its regional partners.

Politically significant Maharashtra is India’s wealthiest state and home to the financial and entertainment capital, Mumbai. It is currently ruled by a coalition of Modi’s Bharatiya Janata Party and a Hindu nationalist ally. An opposition alliance, including the Congress party, is in power in eastern Jharkhand state.

Modi has held big rallies in the two states. The challenge comes barely four months after his party suffered a setback and returned to power in national elections for a third term without a parliamentary majority. He formed the government with the help of regional partners.

Modi, in a post on social platform X ahead of the state elections, wrote: "On this occasion, I appeal to all the youth and women voters to vote in large numbers.”

Nilanjan Mukhopadhyay, a political analyst who wrote a Modi biography, said a reversal in these state elections would negatively impact Modi’s leadership style.

“It will have repercussions for the BJP in coming elections in Delhi and Bihar states next year," he said.

Votes in the two states will be counted on Saturday.

After suffering a setback in national elections, the BJP regained momentum in October as it won Haryana state elections, where pollsters had predicted an easy victory for the opposition Congress party.

Rahul Gandhi’s Congress party won a consolation victory in alliance with the regional National Conference party in local elections in India’s insurgency-wracked Jammu and Kashmir after a 10-year gap.

The BJP is trying to wrest power from the Congress party and its allies in Jharkhand, a state rich in iron ore, coal and other minerals.

The BJP’s use of slogans like “If you divide, then you will die” and “If we are united, then we are safe” to attract Hindu votes has prompted opposition parties to accuse the BJP of trying to polarize the voters along Hindu-Muslim religious lines.

Hindus constitute nearly 80% and Muslims 11.5% of Maharashtra state’s estimated 131 million people.

Mukhopadhyay saw a tendency from top BJP leaders to communalize the elections, saying, "It shows the growing desperation of the party, and it looks like their reading is they are not doing very well in Maharashtra and Jharkhand states."

Election surveys on the eve of polling put the opposition alliance comprising the Congress party and two truncated regional groups, the Shiv Sena and the Nationalist Congress party, ahead of the BJP and its allies currently governing the state. The Congress party defeated the BJP and its allies in the June national elections by winning 30 out of 48 seats in the state. The BJP and its regional partners won 17 seats.

The Congress party and its allies hope to capitalize on the simmering disaffection with high youth unemployment, inflation and low crop prices during the BJP’s rule.

The BJP hopes to attract women voters with a scheme that provides 1,500 rupees ($18) a month to over 20 million women aged 21-65 whose annual family income is less than 250,000 ($3,010). If the Congress party is voted to power in the state, it has promised women double that amount and free transportation in government buses.

Indian people wait in a queue to cast their votes during Maharashtra state assembly elections in Mumbai, India, Wednesday, Nov. 20, 2024.(AP Photo/Rajanish Kakade)

Indian women wait in a queue to cast their vote during Maharashtra state assembly elections in Mumbai, India, Wednesday, Nov. 20, 2024.(AP Photo/Rajanish Kakade)

Indian Muslim women show their ink marked fingers after casting their votes during Maharashtra state assembly elections in Mumbai, India, Wednesday, Nov. 20, 2024.(AP Photo/Rajanish Kakade)

People wait in a queue to cast their votes during Maharashtra state assembly elections in Mumbai, India, Wednesday, Nov 20, 2024.(AP Photo/Rajanish Kakade)

A woman waits outside a polling booth to cast her vote during Maharashtra state assembly elections in Mumbai, India, Wednesday, Nov. 20, 2024.(AP Photo/Rajanish Kakade)

Tribal women show their indelible ink mark on their index fingers after casting their votes for state assembly elections on the outskirts of Ranchi in the Indian state of Jharkhand, Wednesday, Nov. 20, 2024. (AP Photo/Rajesh Kumar)

Tribal women stand in a queue to cast their votes for state assembly election on the outskirts of Ranchi in the Indian state of Jharkhand, Wednesday, Nov. 20, 2024. (AP Photo/Rajesh Kumar)

Bollywood actor Ranbir Kapoor shows the ink mark on his index finger after casting his vote in the Maharashtra state assembly elections in Mumbai, India, Wednesday, Nov. 20, 2024. (AP Photo/Satyajit Desai)

Bollywood actor Salman Khan arrives to cast his vote in the Maharashtra state assembly elections in Mumbai, India, Wednesday, Nov. 20, 2024. (AP Photo/Satyajit Desai)

Chairman and managing director of Reliance Industries Mukesh Ambani and his son Anant Ambani show index finger after casting her votes during Maharashtra state assembly elections in Mumbai, India, Wednesday, Nov. 20, 2024.(AP Photo/Rajanish Kakade)

Elderly Indian woman Shantibai Chitroda shows her ink marked finger after casting her vote during Maharashtra state assembly elections in Mumbai, India, Wednesday, Nov. 20, 2024.(AP Photo/Rajanish Kakade)

Senior citizen Amol Prabhu shows index finger after casting his votes during Maharashtra state assembly elections in Mumbai, India, Wednesday, Nov 20, 2024.(AP Photo/Rajanish Kakade)

Senior citizen Amol Prabhu shows his index finger after casting his vote during Maharashtra state assembly elections in Mumbai, India, Wednesday, Nov 20, 2024. (AP Photo/Rajanish Kakade)

A woman walks out after casting her vote during Maharashtra state assembly elections in Mumbai, India, Wednesday, Nov 20, 2024. (AP Photo/Rajanish Kakade)

People wait in a queue to cast their votes during Maharashtra state assembly elections in Mumbai, India, Wednesday, Nov 20, 2024.(AP Photo/Rajanish Kakade)

People wait in a queue to cast their votes during Maharashtra state assembly elections in Mumbai, India, Wednesday, Nov 20, 2024. (AP Photo/Rajanish Kakade)

In the past week, many Americans remained focused on the economy, inflation and how those forces could impact their lives. Trips to the grocery store or gas station are more painful than they were last year, and that is impacting the decisions of both households and businesses.

Here’s a snapshot of prominent economic data and news that occurred over the past week and what it potentially means for you.

America’s employers delivered a surprising 115,000 new jobs last month despite an economic shock from the Iran war.

Hiring was better than the 65,000 forecasters had expected, though it decelerated from the 185,000 jobs created in March. The unemployment rate remained at a low 4.3%, the Labor Department reported Friday.

Healthcare added 37,000 jobs last month and retailers 22,000. However, manufacturers cut 2,000 jobs in April and have shed 66,000 jobs over the past year despite President Donald Trump’s protectionist policies aimed at creating factory jobs.

The average long-term U.S. mortgage rate rose again this week, reflecting ongoing bond market volatility as surging oil prices due to the war with Iran heighten inflation worries.

The benchmark 30-year fixed rate mortgage rate rose to 6.37% from 6.3% last week, mortgage buyer Freddie Mac said Thursday. That’s still down from one year ago, when the rate averaged 6.76%.

This is the second straight weekly increase, bringing the average rate back to where it was four weeks ago.

Weekly U.S. jobless claim applications rose last week but remain at historically low levels despite elevated inflation and other economic headwinds.

The number of Americans filing for unemployment benefits in the week ending May 2 rose by 10,000 to 200,000, the Labor Department reported Thursday. That’s fewer than the 205,000 new applications analysts surveyed by the data firm FactSet were expecting.

The previous week’s new claims figure, which was the fewest since 1969, was revised up by 1,000 to 190,000.

Weekly filings for unemployment benefits are considered a proxy for U.S. layoffs and are close to a real-time indicator of the health of the job market.

U.S. job openings were essentially unchanged in March but hiring improved before the full impact of the Iran war hit the economy.

Employers posted 6.87 million jobs in March, compared to 6.92 million in February, the Labor Department reported Tuesday.

The job market has been up and down so far this year after a dismal 2025. And the Iran war, which began Feb. 28, has clouded the outlook for the economy and hiring.

The Job Openings and Labor Turnover Survey showed that layoffs rose in March. But hiring improved: Employers added 5.55 million gross jobs, the most since February 2024. More Americans also quit their jobs — a sign of confidence in their prospects.

U.S. stocks rose toward new highs to end the week on promising news in the labor market and also more strong earnings for major U.S. corporations.

The S&P 500 climbed 0.5% toward an all-time high after a report said U.S. employers added 115,000 more jobs than they cut last month, even though the war with Iran is raising fuel costs and uncertainty for everyone.

While hiring slowed from March’s level, it was nevertheless nearly double what economists expected. And it kept the S&P 500 on track for a sixth straight winning week, which would be its longest such streak since 2024. The U.S. stock market has blasted higher since late March, in part on hopes that the war will not mean a worst-case scenario for the global economy and that the Strait of Hormuz will reopen to allow oil tankers to deliver crude from the Persian Gulf again.

Trader Edward McCarthy, left, and Michael Milano work on the floor of the New York Stock Exchange, Thursday, May 7, 2026. (AP Photo/Richard Drew)

FILE - The per-gallon price is displayed elecronically over the grades of gasoline available at a Buc-ee's convenience stop Thursday, May 7, 2026, in Johnstown, Colo. (AP Photo/David Zalubowski, file)

FILE - Hiring sign for sales professionals is displayed at a store, in Vernon Hills, Ill., Wednesday, April 15, 2026. (AP Photo/Nam Y. Huh, file)