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Senior BJP leader Narendra Modi addressed the NDA parliamentary party meeting at Samvidhan Sadan on Friday. The alliance has unanimously elected as its leader
As Prime Minister Narendra Modi returns to office for a record third term, his new government will continue maintaining focus on the infrastructure sector, allotting bigger spends for water, roads and railways, roads and water, the Investment Information and Credit Rating Agency (ICRA) said in a statement on Friday.
Modi 3.0, as the Prime Minister’s third government is popularly being termed, could, however, re-prioritise outlays among the different infra sub-segments in order to accommodate all stakeholders, the agency added.
“There could be some re-prioritisation between various infra sub-segments to accommodate all the stakeholders; however, the capital outlay towards infrastructure is expected to sustain the healthy growth momentum, given the overall GDP multiplier effect of infrastructure spending and consequent job creations in the unskilled and semi-skilled segment,” the ICRA statement further said.
The swearing-in ceremony for PM Narendra Modi and his new Cabinet of ministers will most likely happen on Sunday June 9, at 6 pm, following which the BJP-led National Democratic Alliance (NDA) coalition government will begin their five-year term in office. The NDA won 293 seats in the Lok Sabha 2024 elections to come to power. However Modi’s party, The Bharatiya Janata Party (BJP), which led the alliance, could manage 240 seats, falling short of the majority mark of 273 on it own.
While certain global socio-economic trend trackers such as Moody’s Ratings have been speculating if the slim win for PM Modi and the BJP would slow down reforms essential for fiscal consolidation and lead to higher populist spendings, others such as the investment bank Nomura feel otherwise.
“Slim NDA win may impede progress on fiscal consolidation,” Moody’s Ratings said in a note shortly after the results of Lok Sabha 2024 elections were declared. On the other hand, the investment bank Nomura pointed out that despite the NDA’s narrow margin of victory, the economic fundamentals of India would stay strong because “reforms in India have generally survived the test of politics”.