Prime Minister Narendra Modi has won the Indian elections but lost his absolute majority: his BJP party has won 240 seats on 543 in the Indian parliament, but this time failed to obtain the majority, which could weaken his policymaking. Still, Modi’s re-election opens a new 5-year chapter for himself and his BJP party, making him the second-longest reigning prime minister in independent India’s history.

Modi’s re-election ensures policy continuity and a positive outlook for the world’s fastest-growing large economy. India’s high domestic demand and foreign direct investments make it an attractive and safer destination for multinationals.

India has a lot of potential as the country’s GDP growth is expected to reach 6.8% between April 2024 and March 2025. The strong economic momentum is driven by robust domestic demand and aided by a gradual decline in inflationary pressure and solid economic prospects. India has also been enjoying a surge of foreign direct investments and portfolio inflows since 2023.

On one hand, Modi will strive to keep friendly ties with the West as opposed to China, play an active role in the Indo-Pacific and negotiate bilateral trade deals. On the other hand, he will ensure that India is seen as the leader of the Global South, competing with Beijing.