Indian Prime Minister Narendra Modi and his BJP party, along with their National Democratic Alliance coalition, lost their majority in the recent parliamentary elections.

Modi aims to continue as Prime Minister by forming a coalition government with allies.

The weakened mandate may jeopardize Modi's economic reform goals.

Focus might shift to populist spending measures, affecting fiscal consolidation and hindering reforms on labor and land rules.

Job creation and income growth are critical issues, with youth unemployment being a significant concern.

The central bank is expected to maintain interest rates amid the political changes.

The election outcome could impact market reforms and privatization efforts.

Despite the challenges, Modi is optimistic about achieving his goal of making India a developed country by 2047.