Picture for representational purpose. Photo: Reuters Picture for representational purpose. Photo: Reuters

According to The Associated Chambers of Commerce of India (Assocham) parties are likely to spend around Rs 200 crore on the campaigning for upcoming Delhi Assembly elections.

Assocham said the expenditure has increased by about 30-40 percent as compared to the assembly polls in December 2013 and over 60 per cent of the expenses are being spent on rallies and on advertisements in the print and electronic media. Delhi goes to polls on February 7.

"While the individual candidates are subject to expenditure ceiling, there is no threshold for the parties, a major loophole in the election law, which must be addressed," Assocham secretary general D.S. Rawat said.

"Majority of parties are appealing to a younger generation of internet savvy voters. The online medium to reach voters has become a really powerful," added Rawat.

Advertising firms are responsible for mass mailings to influence voters, opposition research and graphic design of signs and pamphlets. Consulting firms may also train campaign team members and party supporters to delegate responsibilities, points out the report.

Firms like Google, Twitter and Facebook are expecting their revenue to rise substantially this year as the political parties are spending large sums of money on digital media.