Modi 3.0: How different will be the third Modi government
Narendra Modi will take oath for the third time as the prime minister but in a significantly altered situation. Allies, including big regional parties such as the TDP and the JD(U), will prop up Modi 3.0. Many say they will extract their pound of flesh which might result in Modi's agenda of economic growth suffering a drastic change or a slowdown. However, many others think there will not be any substantial change in the direction of Modi's economic agenda as only bold reforms can take a backseat while all else continues as it is. Fitch Ratings on Wednesday reinforced its ‘positive’ outlook on India's medium-term economic growth.
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A populist budget?
The full Union Budget for 2024-25 is nearly a month ahead and it will reflect the new reality of Modi 3.0. Many economists expect the upcoming Budget to take a populist turn with a likely spurt in welfare and support schemes.
The Budget will indicate the policy priorities for the new coalition government and decide the growth trajectory for the next five years, Moody's Analytics said.
«Every government focuses on welfare schemes, but the larger the coalition, the higher the focus on such schemes,» NR Bhanumurthy, economist and vice-chancellor of BR Ambedkar School of Economics University, Bengaluru, has told ET.
And that is not necessarily a good thing for the economy.
