India Election; Modi Set to Take Oath for the Third Time on June 8 as Allies Pledge Support
Editor
5 June 2024 17:14 WIB
RURAL SETBACKS
With the party losing most ground in rural areas, investors say land and labor reforms, which had been expected to unlock value and growth, will probably fall by the wayside.
Newspapers said Modi's aura had dimmed, with the Indian Express's banner headline reading: "India gives NDA a third term, Modi a message."
Modi's victory in his seat of Varanasi considered one of the holiest cities for Hindus, was subdued, with his margin of victory down from nearly 500,000 votes at the last general election in 2019 to a little more than 150,000.
But this reduced victory may not necessarily mean reform paralysis, the chairman of a government finance panel, Arvind Panagariya, said in an editorial in the Economic Times newspaper.
"Despite the reduced majority in parliament, the necessary reforms are entirely feasible. Delivering sustained growth at an accelerated pace can only strengthen the government's hand in the coming years," he said.
The opposition INDIA alliance led by Rahul Gandhi's centrist Congress party won 230 seats, more than forecast. Congress alone won 99, almost double the 52 it won in 2019 - a surprise jump that is expected to boost Gandhi's standing.
The INDIA alliance was also expected to meet on Wednesday in New Delhi and discuss a future course of action.
REUTERS
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