Indian Prime Minister Narendra Modi is set to begin his third term on June 8, equalling a record, following commitments from key allies despite losing the parliamentary majority.
Modi, a figurehead in Indian politics since 2014, now requires support from wavering regional allies. On Wednesday, the Telugu Desam Party and Janata Dal (United) confirmed their support within the National Democratic Alliance.
Chandrababu Naidu, TDP leader, affirmed his participation in the upcoming NDA meeting in Delhi.
Earlier that day, the cabinet advised parliament’s dissolution, enabling Modi to establish a new government.
Modi’s swearing-in is scheduled for Saturday, according to reports.
The NDA secured 293 of 543 seats in the lower house, surpassing the 272-seat threshold.
Moody’s noted that despite winning 240 seats, Modi’s BJP faces a weakened mandate, which could potentially impact fiscal strategies.
Fitch commented that the slim majority might challenge ambitious reforms but expected policy continuity focusing on capital expenditure and business facilitation.
Investors are concerned about neglected land and labour reforms due to losses in rural sectors. The Indian Express highlighted Modi’s diminished allure despite his coalition’s victory.
In Varanasi, Modi’s win was less dominant than in previous elections, yet Arvind Panagariya expressed optimism in the Economic Times about feasible reforms fostering growth.
The opposition INDIA alliance, led by Rahul Gandhi’s Congress, won 230 seats, with Congress itself securing 99 seats, a significant increase from 2019, enhancing Gandhi’s profile.
The INDIA alliance planned a strategy meeting in New Delhi on Wednesday.
