Narendra Modi could respond to disappointment in two different ways https://www.economist.com/briefing/2024/06/06/narendra-modi-could-respond-to-disappointment-in-two-different-ways He could become more moderate and focus on the economy, or double down on Hindu nationalism
Voters have shown that the political system is mature and resilient enough to correct course and that economic concerns such as unemployment trump appeals to chauvinism....The election results appear to be an argument for moderation. ..Economic anxiety, over employment and inflation in particular, seems to have mattered more to voters than sectarianism, especially in the Hindi-speaking central and northern states that form the bjp’s heartland.
...One casualty could be Mr Modi’s plans to expand his infrastructure programme, which has often involved imposing his will on recalcitrant ministries, regulatory bodies and state governments. There could also be greater scrutiny of the beneficiaries of government infrastructure projects. That was reflected in the share prices of several big Indian infrastructure contractors, which suffered heavy losses on June 4th. Among them were companies linked to Gautam Adani.
...Western governments will be relieved. They have been reluctant to denounce Mr Modi’s illiberalism. America and its closest allies are focused instead on cultivating India as a strategic counterweight to China. Lately, however, some Western officials have become concerned about India’s trajectory, fearing that democratic backsliding there could bolster China’s efforts to promote its political values globally. A freer India could find it easier to market itself as an alternative manufacturing base for companies reducing their exposure to China.