Moody’s Analytics cautioned that reduced political stability due to coalition governance in India could hinder decision-making and dampen investor confidence in the short term. With the BJP’s weakened position despite Prime Minister Modi’s third term, the focus shifts to forming effective alliances to govern and address economic challenges. The effectiveness of policies, especially in tackling inflation, unemployment, and socio-economic disparities, will shape India’s growth trajectory. The upcoming Union Budget will offer insights into policy priorities, particularly in infrastructure, manufacturing, and social services.