Indian Prime Minister Narendra Modi claimed a third term this week, but his Bharatiya Janata Party failed to secure an overall majority. He’ll now have to rely on allies to form a government.

The election result was a blow to Modi, who has governed India for a decade with an increasingly firm grip. The rebuke arrived despite Modi’s record of lifting hundreds of millions of Indians out of poverty, which won praise from business titans like Jamie Dimon. Indian stock indexes fell sharply on the election results before recovering.

India watchers expect the country’s new government to move slower on some issues following the surprise election result. But experts believe Modi will be largely undeterred in his economic and foreign policy efforts.

One pain point is India’s rising unemployment rate. That could see Modi supercharge his efforts to turn India into the new factory of the world. Apple is among those investing in manufacturing in the country.

He has also positioned India as a leader of the Global South, strengthening diplomatic ties with the US and pushing for a permanent position on the UN Security Council.

That puts India in direct competition with China, with Modi wasting no time in needling his rival shortly after claiming victory.