India's Modi tightens political grip with historic state victory — but can it usher in reforms and draw investors?

NEW DELHI, INDIA - MAY 04: Bharatiya Janata Party (BJP) leader and Indian Prime Minister Narendra Modi (C) greets people as he arrives at the party headquarters to deliver a victory speech, in New Delhi, India on May 04, 2026. The BJP has emerged victorious in the tally of the West Bengal and Assam state assembly election results. (Photo by Imtiyaz Khan/Anadolu via ) Anadolu | Anadolu | Indian Prime Minister Narendra Modi's Bharatiya Janata Party achieved a historic election win in West Bengal on Monday, strengthening its grip on power as the country grapples with economic challenges and a pressing need for reforms. Modi's popularity was seen to be waning when, in June 2024, his party failed to secure an outright majority in the national polls and had to form a coalition government for his third term as prime minister. Since then, the Indian government has been spending money on populist welfare schemes and, more recently, on fuel subsidies , but reinforcement of Modi's political popularity could provide room to rationalize some of that spending, experts said. The latest results of state polls have dispelled worries of Modi losing political momentum as the BJP won 206 seats out of 294 in West Bengal, forming its first-ever government at the state level. In a post on X following the results, Modi declared : "The Lotus Blooms in West Bengal!" a nod to his party's symbol. "People's power has prevailed and BJP's politics of good governance has triumphed," he said. …