INDIA: NDA Allies Rally Round Modi, But Gov't Less Stable Post-Election

The significant underperformance by PM Narendra Modi's Hindu nationalist Bharatiya Janata Party (BJP) in the Indian general election leaves the next gov't in a less stable position than the one that has been in place for the past five years. With the BJP losing its standalone majority in the Lok Sabha, it will now rely on its allies in the broader right-wing National Democratic Alliance (NDA) in order to govern. Final results show the BJP on 240 seats, a loss of 63 from the previous election. The NDA as a whole won 293 seats, crossing the 272-seat majority threshold in the 543-member chamber. 

• Two key parties for Modi will be the regionalist Telugu Desam Party and Janata Dal (United). In a boost to Modi, both parties have indicated that it would remain supportive of Modi. A spox for JD(U) stated ahead of a meeting in New Delhi of NDA members that “The JD-U will also submit a letter pledging support to the NDA as well as to make Narendra Modi the PM,” 
• Even though both parties have pledged to back Modi, they and the BJP will be well aware that for the next parliamentary term they will be able to exert significantly more influence on the gov't in terms of policy direction or potentially encouraging investment and projects in their regions. 
• Earlier in an election formality Modi submitted his resignation to President Droupadi Murmu and requested the dissolution of the Lok Sabha. Murmu accepted, and recommended Modi and the Cabinet remain in position until the swearing-in, likely to take place 8 June. 

Chart 1. Indian General Election Result, Seats