WHAT DOES THIS MEAN FOR INDIA?
Many of the BJP’s alliance partners don’t share the fiery pro-Hindu views that are core to the BJP agenda. That means that the BJP could be forced to dial back harsh rhetoric and set aside ambitions to more aggressively reshape India into an overtly Hindu nation.
It may also force the BJP to offer cabinet posts and other concessions to alliance partners. On the economic front, a BJP-led government will likely continue to pursue its business-friendly policies, but a weakened mandate means it may struggle to enact ambitious reforms around labour and land rules, which economists say are necessary to keep growth going.
To shore up support, a BJP-led government may be tempted to turn to populist spending measures, putting its fiscal plans at risk.
WHAT DOES THIS MEAN FOR THE REST OF THE WORLD?
Under Modi, India’s profile on the world stage has grown significantly, helped by its robust 8 per cent-plus rate of economic growth and a young and growing population that makes it a draw for foreign businesses.
Modi has sought to cultivate a deeper partnership with the US, which sees India as a critical counterweight to China, while also maintaining strategic independence that has seen it refuse to join the West in condemning Russia over its invasion of Ukraine or shun its oil exports.
Analysts don’t see those positions likely changing anytime soon. The same goes for Modi’s ambitions to make India a global manufacturing hub and continue luring foreign investors on the hunt for the next growth story as China’s economy slows.
