Allies of Narendra Modi Set Conditions for Coalition Government: Financial Resources Allocation and Cabinet Positions

Allied parties with Narendra Modi's Bharatiya Janata Party (BJP) on Thursday, June 7, demanded more budget for their regional states and positions in the federal cabinet as negotiations began for forming a coalition government. Modi was introduced as the leader of the National Democratic Alliance (NDA) on Wednesday after his party lost the majority in the parliament and found itself reliant on support from regional parties, particularly the Telugu Desam Party (TDP) and Janata Dal (United) (JD(U)). The NDA secured 293 seats out of 543 in the lower house of parliament, where a majority requires 272 seats. However, the BJP only won 240 seats, prompting Chandrababu Naidu and Nitish Kumar, leaders of the TDP and JD(U) respectively, to play significant roles in government formation with 16 and 12 seats. The TDP also won regional elections in the southern state of Andhra Pradesh, and Naidu is set to become the Chief Minister of this state. According to a spokesperson from the TDP and five NDA sources, both parties have detailed demands for special status for their states. Special status allows states to receive more development funds from the federal government under simpler conditions. Bihar is the poorest state in India, and Andhra Pradesh lost part of its resources in 2014 when the new state of Telangana was formed. Two sources familiar with the matter told Reuters that the TDP is also seeking more funding for irrigation projects and the construction of its new capital, Amaravati. An NDA source also mentioned that the JD(U) is seeking support for new industrial projects in Bihar and cabinet positions. BJP and allied party leaders are set to discuss the cabinet minister composition on Thursday, a day before Modi meets with President Droupadi Murmu to form the new government. These negotiations mark a return to the pre-2014 era, the year the BJP came to power with an absolute majority. The BJP's loss of majority has raised concerns in financial markets and increased the prospect of a more unstable and uncertain government. However, Shivraj Singh Chouhan, a BJP leader and newly elected representative, told CNN News 18 that Modi's new government will last five years and will return with 'better performance.' Polls indicate that job shortages, high inflation, declining income, government corruption, and fraud are major factors behind the BJP's loss of seats, but Modi still enjoys widespread support.