Modi To Be Sworn in For The Third Term as India’s PM on June 9 With Allies’ Backing 15 parties within the NDA convened a meeting at Modi's residence to formally designate him as the alliance's leader. Modi is scheduled to meet with President Murmu again on Friday to present his claim to form a government
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NEW DELHI (INDIA)/ BONN (GERMANY): Indian Prime Minister Narendra Modi’s National Democratic Alliance (NDA) officially nominated him on Wednesday to lead a new coalition government for a third consecutive term, following a surprisingly narrow election victory.
Modi, who has been a dominant figure in Indian politics since 2014, will now lead a government that depends on the support of regional allies with shifting loyalties, potentially complicating the cabinet’s reform agenda.
After the election results were finalized, Modi submitted his resignation to President Droupadi Murmu, following the cabinet’s recommendation to dissolve parliament—a necessary step before forming a new government.
Subsequently, 15 parties within the NDA convened a meeting at Modi’s residence to formally designate him as the alliance’s leader. Modi is scheduled to meet with President Murmu again on Friday to present his claim to form a government, with the swearing-in ceremony expected to occur over the weekend on 9th June.
The NDA secured 293 seats in the 543-member lower house of parliament, surpassing the 272 needed to form a government. Modi’s BJP won 240 seats on its own, a reduced majority that could impact India’s fiscal policies, according to ratings agencies Moody’s and Fitch. Despite the slimmer majority, Fitch expects broad policy continuity, focusing on capital expenditure, ease of doing business, and gradual fiscal consolidation.
The closer-than-anticipated election results may enhance the prospects for productive reforms, India’s chief economic adviser stated on Wednesday.
The BJP lost significant ground in rural areas, leading investors to believe that expected land and labor reforms might be deprioritized. Newspapers highlighted Modi’s weakened position, with the Indian Express headlining: “India gives NDA a third term, Modi a message.”
During the campaign’s final stages, Modi appealed to India’s Hindu-majority, accusing the opposition of favoring minority Muslims. However, without a clear majority, BJP policies such as uniform personal laws for all religions—which some Muslims oppose—are likely to be sidelined, given the more accommodating stance of Modi’s regional allies towards minorities.
The BJP suffered heavy losses in Uttar Pradesh and Maharashtra, the states that send the most lawmakers to parliament. Modi’s own victory in Varanasi, a holy city for Hindus, saw a reduced margin from nearly 500,000 votes in 2019 to just over 150,000.
Despite the reduced majority, Arvind Panagariya, chairman of a government finance panel, believes necessary reforms are still feasible. In an Economic Times article, he argued that sustained accelerated growth could strengthen the government’s position over time.
The opposition INDIA alliance, led by Rahul Gandhi’s Congress party, won 230 seats, exceeding expectations. Congress alone secured 99 seats, nearly doubling its 2019 tally, which is expected to bolster Gandhi’s standing. The INDIA alliance is also meeting on Wednesday in New Delhi to discuss their future strategy.
-With Agency Input
– Dr. Shahid Siddiqui; Follow via X @shahidsiddiqui
