MUMBAI, India - In a historic moment for the world's largest democracy, Indian leader Narendra Modi was sworn in as prime minister on Sunday for a rare third term. However, breaking from tradition, Modi will now lead a coalition government after his party's setback in its stronghold of northern India's Hindi-speaking belt.

At the age of 73, Modi's consecutive election victories place him in esteemed company, with the last leader to achieve this feat being Jawaharlal Nehru, one of India's founding fathers and its first prime minister. Modi had hoped to win a supermajority in order to reshape the Indian state, but his ambitions were thwarted.

Contrary to predictions from exit polls, the country's mainstream media, and market expectations, Modi's Bharatiya Janata Party (BJP) fell short of winning a two-thirds supermajority of parliamentary seats. As the vote tallying commenced on June 4, it became evident that the BJP, while still clinching the largest number of seats, would not secure a simple majority of 272. In total, the party won 240 seats and, along with its allies, managed to secure 293.

Modi's coalition government now hinges on the support of key allies, most notably N. Chandrababu Naidu of the Telugu Desam Party in Andhra Pradesh state and Nitish Kumar of the Janata Dal (United) in Bihar state.

The oath of office was administered by President Droupadi Murmu at the Rashtrapati Bhavan, India's presidential palace in New Delhi. The ceremony, taking place at twilight after a scorching summer day, was attended by prominent figures, including Bollywood stars and India's wealthiest businessmen, such as the country's richest person, Mukesh Ambani.

One of the reasons for Modi's reduced voter support compared to previous elections was a perceived close association between big business and political power. Many Indians felt that while corporations flourished, ordinary citizens battled with low wages, high unemployment, and rising prices.

Analysts also suggest that there was a swing away from Modi's BJP among Dalits, who comprise India's most oppressed castes, particularly in Uttar Pradesh, the country's most populous state.

Critically, the election results brought relief to many Muslims, India's largest minority, who often experienced hateful comments from the Hindu nationalist BJP, including from Modi himself. During a campaign rally, he referred to them as "infiltrators."

Some experts argue that this coalition government could be the best outcome for India, allowing Modi's experienced leadership while curbing his authoritarian tendencies through the presence of coalition partners. Chietigj Bajpaee, a senior research fellow at Chatham House, stated, "Ultimately, the outcome is the best of both worlds in that it offers a degree of stability and continuity while the weakened mandate restrains the BJP's ability to pursue its more divisive identity-driven agenda."

Critics, however, accuse Modi of undermining India's democracy through attacks on minorities by Hindu nationalists, as well as diminishing space for dissent and free media. There are concerns about the health of India's democracy, with experts highlighting a trajectory of de-democratization over the past decade.

As India enters a new political era, the question remains of how Modi will utilize his power and what measures he may take to secure his position as prime minister.