For India, the election results mean that the BJP may need to dial back its pro-Hindu rhetoric and ambitions to reshape the country into an overtly Hindu nation as many of its alliance partners do not share these views. This could also result in the BJP offering cabinet posts and other concessions to its partners. Economically, a BJP-led government is expected to continue pursuing business-friendly policies, but may struggle to enact major reforms around labor and land rules that are crucial for sustaining economic growth.
On the world stage, under Modi’s leadership, India has seen a significant increase in its global profile due to its strong economic growth and young and growing population. Modi has focused on forging closer ties with the US as a strategic counterweight to China, while also maintaining a level of independence in its foreign policy decisions. It is likely that India will continue to pursue its goal of becoming a global manufacturing hub and attracting foreign investment as China’s economy slows.
The weakened mandate for the BJP may lead to populist spending measures to shore up support, which could potentially put India’s fiscal plans at risk. Despite this, the government will likely continue to pursue policies that are favorable to foreign businesses and investors. However, the inability to enact major reforms could hinder India’s economic growth potential in the long term.
In terms of international relations, India’s partnership with the US and strategic independence are expected to continue under Modi’s leadership. India’s stance on global issues, such as refusing to condemn Russia over its invasion of Ukraine, is unlikely to change. Modi’s focus on making India a global manufacturing hub and attracting foreign investment will remain a key priority as India looks to capitalize on its economic growth and potential as a major player on the world stage.
Overall, the election results in India have implications for both the country and the rest of the world. The BJP’s weakened mandate may impact its ability to push through major reforms and could lead to populist spending measures to shore up support. On the global stage, India’s relationships with key countries like the US are expected to continue, and the country will likely remain focused on attracting foreign investment and solidifying its position as a global player in manufacturing and economic growth.
