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How India’s election result will impact banks and the economy

India’s economy is likely to stay on a strong footing as a new coalition government is formed
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How India’s election result will impact banks and the economyImage: Reuters/Adnan Abidi

After years of certainty, India’s political and economic trajectory has suddenly become more complicated. While polls ahead of the world’s largest elections forecast a resounding victory for Prime Minister Narendra Modi and the ruling Bharatiya Janata Party, the vote saw him lose his parliamentary majority, forcing him to turn to his political allies to form a government. 

The BJP won 240 seats in the 543-seat Lok Sabha lower house. While remaining the largest party by seats overall, it is the first time the party has not had a majority since 2014. Modi has outlined plans to establish a coalition with smaller parties comprising his National Democratic Alliance, which would contribute a further 53 seats. 

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Kimberley Long is the Asia editor at The Banker. She joined from Euromoney, where she spent four years as transaction services editor. She has a BA in English Language and Literature from the University of Liverpool, and an MA in Print Journalism from the University of Sheffield. Between degrees she spent a year teaching English in Japan as part of the JET Programme.
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