Modi's Coalition Allies Demand Funds and Cabinet Roles as Talks Begin.

Published on 06 June 2024, by Alankrita Mukherjee | Delhi, India 

On Thursday, regional parties allied with Indian Prime Minister Narendra Modi insisted on greater funding for their states and federal cabinet roles as discussions commenced to form a new coalition government, according to alliance leaders and insiders.

Following the Bharatiya Janata Party (BJP)'s failure to secure an outright majority in India's parliamentary election, Modi was appointed leader of the National Democratic Alliance (NDA) on Wednesday. The BJP now depends on support from regional parties, primarily the Telugu Desam Party (TDP) and Janata Dal (United).

The NDA secured 293 seats in the 543-member lower house of parliament, surpassing the 272 needed for a simple majority. However, the BJP only won 240 seats, making TDP leader Chandrababu Naidu and JD(U) head Nitish Kumar pivotal with their 16 and 12 seats respectively. Additionally, TDP triumphed in the regional election in Andhra Pradesh, positioning Naidu to become the chief minister there.

"We’re in ongoing discussions, and Naidu is keen on maintaining a strong relationship with the central government because our priority is the state's development and interest," TDP senior leader Kutumba Rao told Reuters. Both parties are advocating for the long-standing demand of special status for their states, according to a TDP spokesperson and five NDA sources.

Special status would enable these states to receive more federal development funds under more favorable terms. Bihar is India's poorest state, while Andhra Pradesh lost resources in 2014 when Telangana was formed from it. In addition to special status and cabinet positions, TDP seeks additional funds for irrigation projects in Andhra Pradesh and to complete the construction of its new capital, Amaravati, as per two sources familiar with the discussions.

"This is not our first alliance with NDA, so we are confident of getting what we deserve," TDP spokesperson Jyothsna Tirunagari said. "In our previous terms with NDA, we had ministerial positions and even the Lok Sabha speaker from our party. This time, we are a strong partner with a clear vision for the country," she added.

JD(U)'s Kumar is also seeking support for new industrial projects in Bihar along with federal cabinet positions, according to an NDA source.

Coalition Negotiations

Top BJP leaders engaged in talks about ministerial portfolios with their allies on Thursday, ahead of Modi's expected meeting with President Droupadi Murmu on Friday to stake his claim to form the next government, according to a BJP source. Modi is anticipated to be sworn in over the weekend, with local media reporting that leaders from Sri Lanka, Bangladesh, Maldives, Nepal, Mauritius, and the king of Bhutan have been invited to the ceremony.

These coalition negotiations recall the pre-2014 era, before Modi's outright BJP majority, when alliance partners bargained for positions and benefits in exchange for their support. The BJP's loss of its majority unsettled markets, raising concerns about a potentially less stable government.

Nonetheless, Shivraj Singh Chouhan, a senior BJP leader and newly elected lawmaker, assured CNN-News18 that Modi's new government would complete its full five-year term and "come back with a better performance."

A survey published on Thursday indicated that job scarcity, high inflation, and falling incomes had impacted Modi's votes, despite his personal popularity remaining strong. Approximately 30% of voters expressed concerns about inflation, up from 20% before the election, according to the Lokniti-CSDS post-election survey published by the Hindu newspaper. Unemployment was the main concern for 32% of respondents in a pre-election survey for the Hindu. Other issues included declining incomes and dissatisfaction with the government's handling of corruption and fraud.