Set for third term, Modi says will work with everyone for a developed India

Preparing to take office for a third consecutive term, Narendra Modi pledged on Tuesday to work with all states to build a developed India, regardless of the party in power. In his first speech after the 2024 Lok Sabha election results, Modi emphasised significant decisions and the fight against corruption.

"The fight against corruption is becoming tougher by the day. Corruption is being shamelessly glorified for political interest. In our third term, the NDA (the Bharatiya Janata Party-led National Democratic Alliance) will focus a lot on rooting out corruption of all kinds," Modi said.

Modi did not address the reduced number of seats in parliament but highlighted victories in assembly and Lok Sabha elections in Madhya Pradesh, Gujarat, Chhattisgarh, Odisha, Delhi, Himachal Pradesh, and Uttarakhand states. He said that Congress had been wiped out in several states and stated that the opposition alliance's combined seats were fewer than those of the BJP alone.

"Our Constitution is our guiding light. I want to assure that the Centre will work with all states, irrespective of the party in power there, to work towards our resolve to make India a developed country," Modi said.

The Indian prime minister received a warm welcome at the BJP headquarters, where hundreds of supporters chanted 'Modi, Modi.' BJP president JP Nadda and ministers Rajnath Singh and Amit Shah greeted him, reported PTI. The stage backdrop featured 'Dhanyawad Bharat' (thank you India) in various languages, including Urdu. Modi began his speech with 'Jai Jagannath' and thanked the people of Odisha for giving the BJP a clear mandate for the first time. He also thanked Telugu Desam Party (TDP) supremo Chandrababu Naidu and Bihar chief minister Nitish Kumar for the electoral successes in Andhra Pradesh and Bihar.

However, Modi's third term comes with a diminished majority. The BJP lost its own majority in parliament for the first time in a decade and is now dependent on regional allies. "For the BJP to drop below the majority mark, this is a personal setback for him," Yogendra Yadav, a psephologist and founder of a small political group opposed to the BJP, told Reuters.

Since taking power 10 years ago, Modi has been the ruling alliance's unquestioned leader. His dominance in Indian politics has led to concerns about the country's slide towards authoritarianism. Modi's face was omnipresent during the campaign, and he ran a presidential-style campaign with a personal "Modi guarantee" to change lives.

The opposition Congress party nearly doubled its parliamentary seats. "The country has said to Narendra Modi 'We don't want you'," said Congress leader Rahul Gandhi.

With more than 99 percent of votes counted, the BJP's vote share was marginally lower than in 2019. Modi was re-elected to his Varanasi constituency by a margin of 152,300 votes, compared to nearly half a million votes five years ago.

The BJP and its allies are on track to win at least 291 seats out of 543, enough for a majority. However, the BJP itself won or was leading in only 240, down from 303 in the previous election, while Congress won or was leading in 99 seats, up from 52.

Among the elected independents were Amritpal Singh, a Sikh separatist preacher, and Sheikh Abdul Rashid from Kashmir, both serving time in jail.

"BJP has failed to win a big majority on its own," said Congress lawmaker Rajeev Shukla. "It's a moral defeat for them."

Stocks slumped on speculation that the reduced majority would hinder the BJP's ability to implement reforms. Shares in Adani Enterprises fell 25 per cent before rebounding slightly.