The reason financial investors aren’t too worried is simple: Modi still has a majority in the lower house of parliament and Delhi doesn’t contribute much to the opposition- controlled upper house, where state elections determine seats.
Still, the next few months might be Modi’s best chance to push through unpopular moves. So far most of what he’s done has cost little political capital: scrapping diesel subsidies when oil prices were low and pressing ahead with measures proposed by the previous government, such as allowing more foreign investment in insurance and passing a national sales tax.