Forbes India 15th Anniversary Special

Modi 3.0 and coalition government: Our most-read stories of the week

This week, stories about the effects of the coalition mandate on sectors such as semiconductors, defence, and even areas such as job creation, labour, and capital expenditure piqued the interest of our readers

Published: Jun 8, 2024 10:00:00 AM IST
Updated: Jun 7, 2024 06:07:46 PM IST

Modi 3.0 and coalition government: Our most-read stories of the weekImage: Shutterstock

1)  N Chandrababu Naidu: Kingmaker
Modi 3.0 and coalition government: Our most-read stories of the week
N Chandrababu Naidu, chief of the Telugu Desam Party (TDP), is a veteran politician. Coalition governments in the Centre are not a new phenomenon for him. He was the convenor of the United Front in 1996. In 1999, TDP gave external support to Atal Bihari Vajpayee-led National Democratic Alliance (NDA) without being a part of the cabinet. In Lok Sabha Elections 2024, his support is crucial for Narendra Modi and Bharatiya Janata Party (BJP) as the election delivered a coalition mandate. TDP won 16 of the 25 seats from Andhra Pradesh, and these wins are proving to be a crucial bargaining chip for Naidu. Here's a look at his kingmaker status and how it is also helping Heritage Foods—a company he founded in 1992.

2) What's next for sunrise sectors?
Modi 3.0 and coalition government: Our most-read stories of the week
By now, you must have guessed it. This week's newsletter is all about the effects of the coalition mandate after ten years of the BJP majority government. After the election results, Prime Minister Narendra Modi said the government will accelerate the progress in electronics and new and upcoming sectors. At the moment, it looks easier said than done. As we watch the negotiations unfold in the news every day, all the partners are allegedly extracting their pounds of flesh. Be it cabinet posts, special statuses for their states, or changes in the current policies. How will these negotiations unfold for sunrise sectors that did get special attention in the last decade? Here's what experts are saying.

3) Modi 3.0 and electronics manufacturing sector
Modi 3.0 and coalition government: Our most-read stories of the week
“The last ten years have ensured Indian companies revitalise themselves; the prime minister’s call for ‘Aatmanirbharta’ has been met with much appreciation together with on-the-ground action,” says Ajai Chowdhry, co-founder of HCL. Production-linked Incentive (PLI) schemes have worked in favour of the manufacturing sector. Narendra Modi is set for his third term as prime minister. Will the new coalition dynamics slow down what has been happening in the electronics manufacturing industry for the past ten years? Experts believe the opposite. They expect the new government to double down on investments. What's the cause of this optimism? Let's find out.

Discover


1) Real challenges for BJP and its allies
Modi 3.0 and coalition government: Our most-read stories of the week
Swift negotiations with the coalition partners have again given the reins of power to Narendra Modi and the BJP. Here, we reiterate that relying on allies to form a government comes with its own set of concerns, particularly concerning labour, food inflation, capital expenditure and agriculture policies. Let's not forget the regional issues closer to the smaller parties' hearts. Economists believe that the Centre and RBI now need to pay special attention to these sticky issues to improve income generation, boost consumption expenditure and, in turn, economic growth. Here are the issues under the microscope.

2) Defence sector and Atmanirbhar Bharat
Modi 3.0 and coalition government: Our most-read stories of the week
Credit where it is due. PM Modi has been instrumental in pushing that agenda of greater indigenisation, even though India’s defence ministry has sought greater domestic partnerships in defence projects before he took centre stage. The indigenisation efforts have resulted in the likes of Tejas aircraft being built by Hindustan Aeronautics Limited (HAL), the Scorpene submarines being built by Mazagon Dock Shipbuilders with some more in the pipeline, or even drones for the Indian Army being built by the private sector. They have also created new billionaires like Satyanarayan Nuwal of Solar Industries. Will the momentum continue under Modi's third term in office?

3) What do VCs want?
Modi 3.0 and coalition government: Our most-read stories of the week
Indian voters have denied a majority to Prime Minister Narendra Modi's BJP in Lok Sabha Elections 2024. However, as Modi is set to remain in power for a historic third term, leading the coalition NDA. Three well-known VC investors unpack what this means for India's tech and startup ecosystem. In the latest episode of One Thing Today in Tech podcast, listen to Ninad Karpe, founding partner at 100X.VC in Mumbai, Abhishek Goyal, co-founder of Tracxn and angel investor in Bengaluru, and Vishesh Rajaram, managing partner at Speciale Invest, argue why India's economic fundamentals still make it a top destination for global investments.

4) Moving on from elections
Modi 3.0 and coalition government: Our most-read stories of the week
The Election Commission of India announced the schedule for the 18th Lok Sabha Elections on March 16. On the same day, the Model Code of Conduct came into effect, and the country couldn't focus on anything else until June 4, when the results of this laborious process were announced. The markets crashed over 8 percent on election results day, following a 4 percent surge pole-vaulting to record highs. Now, they are recovering. The topsy-turvy nature of Indian equities in the last few months has exposed the current fragility of stock markets. Besides the coalition government, the onset of monsoon, the upcoming Union Budget, and the earnings calls in July will determine the fate of markets in the coming months.