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India cabinet recommends dissolution of Lok Sabha
Local media also reported that Modi would be sworn in as prime minister for his new term on June 8
Photo: Reuters
Indian Prime Minister Narendra Modi's cabinet recommended the dissolution of the lower house of parliament on Wednesday, a day after his Bharatiya Janata Party-led alliance won a rare third term in general elections, news agency ANI said.
Modi is expected to be sworn-in for a record-equalling third term on June 8, after key allies pledged their continued support a day after a humbling election verdict that saw his party lose its majority in parliament.
Modi, a populist who has dominated Indian politics since coming to power in 2014, will for the first time need the support of regional allies whose loyalties have wavered over the years, which could complicate the government's reform agenda.
On Wednesday, two allies in his National Democratic Alliance coalition, the Telugu Desam Party, a key regional player in the southern state of Andhra Pradesh, and the Janata Dal (United) which rules the northern state of Bihar, pledged their support.
"We are with the NDA, I will be attending the meeting in Delhi today," Chandrababu Naidu, the leader of the TDP, told reporters, referring to a meeting of the BJP-led alliance scheduled to take place later in the day.
The federal cabinet met on Wednesday morning and recommended the dissolution of parliament, a constitutional formality before Modi can form a new government.
Modi and his new cabinet were scheduled to be sworn-in on Saturday, local media reported.
The NDA won 293 seats in the 543-member lower house of parliament, more than the 272 needed to form a government.
Modi's BJP won 240 seats on its own, a weakened verdict which could slow India's fiscal tightening, ratings agency Moody's said.
The weakened majority for Modi's alliance could pose challenges for the more ambitious elements of the government's reform agenda, ratings agency Fitch said.
However, it added: "Despite the slimmer majority, we do expect broad policy continuity to persist, with the government retaining its focus on its capex push, ease of doing business measures, and gradual fiscal consolidation."
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