A day after a humiliating election result that saw his party lose its majority in parliament, important allies promised to support Indian Prime Minister Narendra Modi going forward, setting the stage for his record-breaking third term of office to begin on June 8.
The government’s reform plan may become more difficult to implement under Modi, a populist who has dominated Indian politics since taking office in 2014. This is the first time that Modi will require the backing of regional allies whose allegiance has waned over time.
Two partners in his coalition, the Telugu Desam Party, a major regional force in the southern state of Andhra Pradesh, and the Janata Dal (United), which governs the northern state of Bihar, announced their support for him on Wednesday.
“We are with the NDA, I will be attending the meeting in Delhi today,” TDP leader Chandrababu Naidu said to reporters, alluding to the later-in-the-day gathering of the BJP-led coalition.
In a meeting on Wednesday morning, the federal cabinet suggested dissolving the parliament, which is required by the constitution before Modi can establish a new administration.
The sworn-in ceremony for Modi and his new government was set for this Saturday, according to local media.
In the 543-member lower house of parliament, the NDA secured 293 members, surpassing the necessary 272 MPs for the formation of a government.
According to ratings firm Moody’s, Modi’s BJP won 240 seats on its own, a weakening result that might delay India’s fiscal tightening.
The most ambitious components of the government’s reform plan may face difficulties due to the decreased majority for Modi’s alliance, according to ratings agency Fitch.
However, it stated: “Despite a smaller majority, we do expect broad policy consistency to persist, with the government maintaining its focus on its capex push, ease of conducting business measures, and gradual fiscal reduction.”
