Modi Faces Early Test in Third Term with Upcoming Budget

• Narendra Modi's BJP, re-elected for a historic third term, lost its parliamentary majority and now relies on coalition partners.
• Coalition partners TDP and JDU demand significant funding for state projects ahead of the budget, potentially costing 0.2% of India's GDP.
• Investors are keen to see if Modi can adapt to coalition politics while maintaining fiscal discipline and business-friendly reforms.
• Modi faces challenges like rural hardship and joblessness, which analysts say contributed to BJP's election setbacks.
• The new budget, supported by a record transfer from the Reserve Bank of India, aims to balance coalition demands and economic goals.

Source: Financial Times; Image Credits: India Today