Prime Minister Narendra Modi signs the oath of office at the Rashtrapati Bhavan in New Delhi on June 9. Bloomberg
Prime Minister Narendra Modi signs the oath of office at the Rashtrapati Bhavan in New Delhi on June 9. Bloomberg
Prime Minister Narendra Modi signs the oath of office at the Rashtrapati Bhavan in New Delhi on June 9. Bloomberg
Prime Minister Narendra Modi signs the oath of office at the Rashtrapati Bhavan in New Delhi on June 9. Bloomberg

Indian Prime Minister Narendra Modi announces his coalition cabinet for third term


Taniya Dutta
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Indian Prime Minister Narendra Modi, who took charge of the office for a third term in a row on Monday, gave ministerial portfolios to his council, with several of his party members retaining important ministries in his first coalition government.

There had been speculation that Mr Modi's Bharitya Janata Party may lose such portfolios in the coalition government after it failed to achieve a clear majority at the polls, but the party has retained the most important ministries.

Amit Shah has retained the Ministry of Home Affairs, while Rajnath Singh will remain at the Defence Ministry for a second time as part of the new government.

Subrahmanyam Jaishankar and Nirmala Sitharaman will continue as Minister of External Affairs and Minister of Finance respectively.

Nitin Gadkari retained the Ministry of Road Transport and Highways.

Dharmendra Pradhan will continue as Minister of Education, and Bhupendra Yadav remains in charge of the Ministry of Environment, Forest and Climate Change of India.

BJP party president Jagat Prakash Nadda has been assigned to the Ministry of Health, replacing Mansukh Mandaviya, who becomes Minister of Labour and Employment in the cabinet.

Prime Minister Narendra Modi, left, fold hands and thanks cabinet ministers Rajnath Singh, Amit Shah, Nitin Gadkari, and Jagat Prakash Nadda during the swearing-in ceremony at the presidential palace in New Delhi. EPA
Prime Minister Narendra Modi, left, fold hands and thanks cabinet ministers Rajnath Singh, Amit Shah, Nitin Gadkari, and Jagat Prakash Nadda during the swearing-in ceremony at the presidential palace in New Delhi. EPA

Mr Modi, 73, was sworn in as the Prime Minister on Sunday for a third consecutive term after his BJP-led National Democratic Alliance won the recently held parliamentary elections to Lok Sabha, the lower house, with 293 seats of the 543 seats.

He first gained power in 2014, when the BJP swept the board. It won with a bigger mandate in 2019. This term begins with him at the head of a coalition government.

On Sunday, he led the swearing-in of 71 members of his council, including seven ministers, but no Muslims. India is home to 210 million Muslims – its largest religious minority.

While the BJP did not win an absolute majority this year, Mr Modi formed the government with regional allies within the NDA, mainly the Telugu Desam Party from southern Andhra Pradesh and Janata Dal (United) from the eastern state of Bihar.

The TDP won 16 seats, while the JD(U) won 12. The parties, touted as kingmakers, had asked for prominent positions for their leaders in the cabinet.

They have also demanded the position of the Lok Sabha speaker and are still talking to the BJP.

The speaker is a constitutional and ceremonial head of the lower house of the Parliament and the post usually goes to the ruling alliance, while the deputy speaker’s post is by convention held by a member of the opposition.

Mr Modi has appointed Ram Nath Thakur of JD(U) as the junior agriculture and farmers welfare minister, while the TDP's Ram Mohan Naidu has been appointed as Civil Aviation Minister.

The Prime Minister began his third term by signing into law a farmer’s welfare scheme that provides a tranche of a cash payments to 93 million farmers.

Two-thirds of India's 1.4 billion people draw their livelihood from agriculture, which accounts for nearly a fifth of the country's gross domestic product.

Rahul Gandhi, Mr Modi's chief rival, was nominated on Saturday to lead India's opposition in parliament, after he defied pre-election forecasts to help the Congress party nearly double its seats.

No date has been set for the opening of parliament, but Indian media have reported the new session is expected to begin next week, when the speaker will be elected.

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Your rights as an employee

The government has taken an increasingly tough line against companies that fail to pay employees on time. Three years ago, the Cabinet passed a decree allowing the government to halt the granting of work permits to companies with wage backlogs.

The new measures passed by the Cabinet in 2016 were an update to the Wage Protection System, which is in place to track whether a company pays its employees on time or not.

If wages are 10 days late, the new measures kick in and the company is alerted it is in breach of labour rules. If wages remain unpaid for a total of 16 days, the authorities can cancel work permits, effectively shutting off operations. Fines of up to Dh5,000 per unpaid employee follow after 60 days.

Despite those measures, late payments remain an issue, particularly in the construction sector. Smaller contractors, such as electrical, plumbing and fit-out businesses, often blame the bigger companies that hire them for wages being late.

The authorities have urged employees to report their companies at the labour ministry or Tawafuq service centres — there are 15 in Abu Dhabi.

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The number of asylum applications in the UK has reached a new record high, driven by those illegally entering the country in small boats crossing the English Channel.

A total of 111,084 people applied for asylum in the UK in the year to June 2025, the highest number for any 12-month period since current records began in 2001.

Asylum seekers and their families can be housed in temporary accommodation while their claim is assessed.

The Home Office provides the accommodation, meaning asylum seekers cannot choose where they live.

When there is not enough housing, the Home Office can move people to hotels or large sites like former military bases.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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The bio:

Favourite film:

Declan: It was The Commitments but now it’s Bohemian Rhapsody.

Heidi: The Long Kiss Goodnight.

Favourite holiday destination:

Declan: Las Vegas but I also love getting home to Ireland and seeing everyone back home.

Heidi: Australia but my dream destination would be to go to Cuba.

Favourite pastime:

Declan: I love brunching and socializing. Just basically having the craic.

Heidi: Paddleboarding and swimming.

Personal motto:

Declan: Take chances.

Heidi: Live, love, laugh and have no regrets.

 

Updated: June 10, 2024, 9:07 PM