'Modi retaining power under changed conditions to make reforms challenging'

Prime Minister Narendra Modi retaining power in the general elections under "changed circumstances" will make the implementation of critical reforms challenging, economists said on Tuesday. Economists said the results, wherein trends and leads showed the incumbent National Democratic Alliance (NDA) being set to win around 295 seats but Modi's BJP falling short of the halfway mark of 272 by itself, are a "negative surprise". "It is likely that Narendra Modi will return as PM for a third term. However, he will have to contend with changed circumstances," a note from the domestic brokerage Emkay said, adding that the broad direction of the economic policy is unlikely to change. Seeming to concur on the same, analysts at Swiss brokerage UBS said it expects the government to push supply-side reforms, including manufacturing, simplification of regulatory processes, labour law implementation, skill development and creating employment opportunities. "However, we think implementation of ...