With key Cabinet posts unchanged, Modi signals it's business as usual for India

But team will have to tackle longstanding economic issues with no easy fixes: Experts

- Nirmala Ganapathy

Prime Minister Narendra Modi's unchanged core Cabinet team is a signal to jittery investors that it is business as usual in India, despite his party's disappointing showing at the polls.

The Bharatiya Janata Party (BJP) has retained all the major portfolios, but having failed to secure an outright parliamentary majority, it has had to cede 11 Cabinet and junior ministers' posts to its coalition partners.

The BJP's new reliance on its allies to form the government has reignited painful memories of India's last brush with coalition politics.

In 2014, the then Congress Party-led government was booted out of power due to policy paralysis that had impeded economic policies, in part due to coalition politics.

While the allies have expressed full support for the BJP government, there is some concern that Mr Modi's diminished hold on power could hamstring India's investment-driven growth, which has served as the bedrock of his administration's rule.

Nonetheless, the return of many familiar faces in the 71-member council of ministers, which was sworn in on June 9, will boost business sentiment, noted analysts.

Ms Nirmala Sitharaman has returned as Finance Minister, Mr Piyush Goyal as Commerce and Industry Minister, and Mr Nitin Gadkari as Road Transport and Highways Minister.

Both Home Minister Amit Shah - the second-most powerful politician after Mr Modi - and External Affairs Minister S. Jaishankar returned to their portfolios.

"By keeping core ministries unchanged, the government is signalling status quo on their broader policy direction, by introducing certainty and consistency on the decision-making front," said DBS Bank executive director and senior economist Radhika Rao.