Indian Prime Minister Modi is expected to be sworn in for his historic third term on June 8. His main allies have pledged their continued support, with US President Biden extending his congratulations.
Since coming to power in 2014, Narendra Modi has been a dominant figure in Indian politics. With his party, the BJP, failing to secure a majority in the parliament as it did before, his third term will require the support of regional allies for the first time.
On Wednesday, two allies within the National Democratic Alliance led by the BJP, the Telugu Desam Party (TDP) from Andhra Pradesh and the Janata Dal (JD) ruling Bihar, pledged their support.
According to reports from Reuters, TDP leader Chandrababu Naidu stated, “We support the NDA, and I will attend the meeting held in Delhi today.” The alliance led by the BJP is set to hold a meeting later that day.
On Wednesday, after the federal cabinet meeting and recommending the dissolution of parliament, Modi submitted his resignation to President Droupadi Murmu, marking the first step required in forming a new government.
Local media reports indicate that Modi and his new cabinet are scheduled to be sworn in on Saturday.
Modi has pledged to “usher in a new era of significant decisions,” stating, “We will not stop until the country is free from poverty.” He has vowed to provide more opportunities for women.
US President Biden congratulated Modi and the NDA on winning the election and forming a new government for the third consecutive term, expressing expectations for further collaboration to ensure freedom in the Indo-Pacific region.
Biden posted on social media platform X, saying, “As we jointly embark on a future of unlimited potential, the friendship between our two countries will only grow stronger.”
The US State Department released a statement expressing anticipation for “deepening the partnership with the Indian government to promote prosperity and innovation, address the climate crisis, and ensure freedom and openness in the Indo-Pacific region.”
The NDA won 293 out of 543 seats in the lower house of parliament in this election, surpassing the 272 seats needed to form a government. However, this came as an unexpected blow to Modi, who had hoped for a landslide victory in this election.
Modi’s BJP alone won 240 seats. Rating agency Moody’s has indicated that this outcome may slow down India’s fiscal consolidation process.
Both TDP and JD, the two regional allies, are seen as pragmatists on economic policy issues. However, Modi’s new government may need to mobilize funds to support increased spending on state welfare projects.
Rating agency Fitch has noted that the majority position of Modi’s coalition has been weakened, posing challenges to the more ambitious parts of the government’s reform agenda.
Nevertheless, the agency added, “Despite the reduced majority, we still expect broad policy continuity to persist, with the government continuing to focus on promoting capital expenditure, streamlining business measures, and gradually rationalizing fiscal discipline.”
India’s Chief Economic Advisor remarked on Wednesday that the election results surpass expectations, which bodes well for more effective reform prospects.
The opposition Alliance led by the center-left Congress Party, India United (INDIA), won 230 seats in this election, surpassing expectations. The Congress Party alone secured 99 seats, nearly doubling its tally from 2019.
India United is expected to hold a meeting in New Delhi on Wednesday to discuss future action plans.