Stocks

India’s student protests raise a fresh political risk for Modi

Youth-led demonstrations over exam leaks have spread from New Delhi, drawing police action, opposition pressure and investor attention to unrest risk.

Theo Nakamura

By Theo Nakamura · Staff Writer

· 3 min read

India’s student protests raise a fresh political risk for Modi
Photo: CNBC

Thousands of young protesters in India are challenging Prime Minister Narendra Modi’s government over exam paper leaks, turning a student grievance into a wider test of political stability. For investors watching India, the issue matters because sustained unrest can pressure policy agendas, hurt confidence and raise the cost of doing business in a key growth market.

The demonstrations are being led by the Cockroach Janta Party, or CJP, which CNBC described as a pseudo-political group that began as online satire before becoming a real-world protest movement. Students are demanding the resignation of Education Minister Dharmendra Pradhan after alleged leaks in major exams in May.

The protest movement began June 6, according to CNBC, and escalated this week after demonstrators in New Delhi tried to move toward parliament. Police used tear gas and batons on July 20, according to AFP via Getty Images and CNBC. Delhi Police said on X that more than 100 police personnel were injured during what it called violent protests.

Lavanya Singh, a 26-year-old who attended the July 20 protest, told CNBC that the police response appeared aimed at causing damage rather than dispersing the crowd. She said anger, betrayal and helplessness were driving students back to the protest site.

India’s home ministry did not respond to CNBC’s request for comment.

Why the exam issue has become political

The immediate flashpoint is the National Eligibility cum Entrance Test, a medical college entrance exam. CNBC reported that the test was cancelled in May after allegations of a paper leak, affecting millions of students, and that a retest took place in June.

Rahul Gandhi, India’s leader of the opposition, was briefly detained Tuesday while protesting outside the prime minister’s residence in support of the students, CNBC reported. Gandhi claimed in a Wednesday press conference and on X that about 152 exam paper leaks had taken place over the past decade, affecting more than 75 million students.

The ruling Bharatiya Janata Party said the government would investigate Gandhi’s claims, according to a post on X by BJP president J.P. Nadda. Pradhan wrote on X Wednesday that the government was fully committed to discussing the exam leak issue in parliament and addressing what he called the genuine concerns of young people.

Atman Trivedi, a partner at DGA Albright Stonebridge Group, told CNBC the protests could be the largest public challenge to the government since the farmers’ movement of 2020 and 2021. He said India’s youth frustration is tied not only to exam leaks, but also to unemployment and limited economic mobility.

The CJP’s rapid rise

The CJP was launched May 16 by Abhijeet Dipke, a political communications strategist and Boston University student, CNBC reported. Its name followed comments by Chief Justice of India Surya Kant, who referred to people attacking institutions as parasites and compared some unemployed young people and activists to cockroaches during a hearing. The chief justice later said his oral remarks had been misquoted, according to ANI.

The group built a large online audience, reaching more than 22 million followers, according to CNBC. Its account was taken down Wednesday, and Dipke blamed Modi in a post on X.

The protests are also drawing support beyond students. CNBC reported that activist and educator Sonam Wangchuk has backed the movement while on a 25-day hunger strike and receiving medical care. Farmers’ union leader Rakesh Tikait also pledged support, according to a CJP post on X.

Verisk Maplecroft ranks India as the highest-risk country in its Civil Unrest Index, a measure of protest and disorder risk. Reema Bhattacharya, the firm’s head of Asia research, said in a Wednesday note that protest participation has more than doubled over the past year and unrest has spread across the country.

Pramit Pal Chaudhuri, South Asia practice head at Eurasia Group, told CNBC the CJP is becoming a gathering point for people with grievances against the government, while warning that the movement is also becoming more chaotic.

This story draws on original reporting from CNBC.

More from Stocks

All Stocks