The no-confidence vote that has been triggered against Prime Minister Modi's BJP is highly unlikely to lead to the fall of the government given the BJP's sizeable parliamentary majority. But it may make the ruling party even more reluctant to pursue contentious reforms ahead of next year's general election. Meanwhile, the continued sharp rise in food prices means that headline CPI inflation is all but certain to have breached the upper limit of the RBI's 2-6% target range in July.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services