PM Narendra Modi retained several cabinet ministers in key portfolios, including finance. Signaling policy continuity in the new coalition government, Nirmala Sitharaman was reappointed as the finance minister, a position she’s held since 2019. Home Affairs Minister Amit Shah, External Affairs Minister Subrahmanyam Jaishankar, Commerce Minister Piyush Goyal and Transport Minister Nitin Gadkari also kept their posts.
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Economists praised the reappointment of Nirmala Sitharaman and said that it will help in easing market concerns around the new coalition government. Abheek Barua, chief economist at HDFC Bank, said as per Bloomberg that Nirmala Sitharaman is “a prudent fiscal manager” who will ensure India remains on the path of fiscal consolidation.
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Abheek Barua said, “We can see more allocation towards rural development and rural housing, and she will ensure that it does not translate into any fiscal slippage. It’s very critical at this moment.”
Sonal Varma, chief economist for India and Asia ex-Japan at Nomura Holdings Inc, said, “The decision to retain key cabinet ministers in the important portfolios of finance, home, defense, external affairs, road transport, in the third term sends a strong signal of policy continuity."
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Goldman Sachs Group Inc. economists including Santanu Sengupta wrote in a note, “We expect the new government to stick to the fiscal consolidation path with a continued thrust on infrastructure creation through more rail network, amidst a slight tilt towards more rural spending."
{{/usCountry}}Goldman Sachs Group Inc. economists including Santanu Sengupta wrote in a note, “We expect the new government to stick to the fiscal consolidation path with a continued thrust on infrastructure creation through more rail network, amidst a slight tilt towards more rural spending."
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