NEW DELHI: It appears observers in China are closely watching the Gujarat polls, because they see it as a "litmus test" of Indian voters' attitude toward Prime Minister Narendra Modi 's reform agenda, reported Chinese state media.And why do they think Indian voters' attitude affects China?India's economic reforms are "an issue of deep concern to China because of its increasing economic interaction with India", said an article in the state-run Global Times. And any changes in India's economic reforms will be felt almost immediately by China, it added."The outlook for India's economic reforms is deeply related to a good number of Chinese companies doing business in India such as Xiaomi and OPPO. If the BJP wins an overwhelming victory in Gujarat, the Modi administration may take more radical approaches to economic reform. China's companies will feel the changes no later than India's," said the Global Times article.A loss for Modi's BJP in Gujarat will be seen by China as "the biggest setback yet" for the economic reforms initiated by the government, said the article."Modi's reforms have drawn fierce opposition from other parties and some economists, but those most qualified to evaluate the 'Gujarat model' are the people of Gujarat. Whatever the election result is, it will have a great impact on the public opinion environment for the implementation of the rest of Modi's reform agenda," said the article.What's more, if the BJP wins but loses vote share, that too is a red flag, said Global Times."Even if the BJP wins the election but loses a chunk of its hefty majority in the state, the prospects for India's reforms may be clouded. Growing market fears of a possible setback for the BJP in Gujarat reflect a flaw in India's economic reforms: People doubt that the reforms can bring enough benefits to the country's small businesses and ordinary people. The government must find a way to make the reforms gain public support," the article said.China, the article advocates, should follow the BJP's Gujarat campaign closely."Companies doing business in India should prepare for possible changes in economic policy over the long run and possible volatility in India's financial markets next week after the results are announced," it said.Meanwhile, exit polls yesterday unanimously predicted the BJP would return to power in Gujarat and rout the Congress in Himachal Pradesh.While the polls disagreed on the scale of the BJP's victory in Modi's home state of Gujarat, not one suggested a close result, with the lowest forecast being 99 seats for BJP in the 182-member assembly.