Nirmala Sitharaman moved from defence to become finance minister in a second shock, while career diplomat S. Jaishankar became foreign minister.
Hardline Hindu nationalist Shah was the president of the right-wing Bharatiya Janata Party (BJP) who masterminded Modi's second straight landslide victory in the country's national election.
Shah, 54, will now pursue Modi's nationalist agenda in internal security, immigration and other key national issues.
A controversial figure, Shah was accused of ordering police to carry out three extrajudicial killings in his home state of Gujarat in 2005. He was banished from the western state for two years before being cleared in 2014 for lack of evidence.
Recently he hit the headlines after comparing illegal immigrants to "termites" that must be thrown out of the country.
But he has been a close confidante of Modi for nearly two decades and some analysts say Shah is now in place to take over the party if Modi stood down.
"Congratulations to @AmitShah ji who transformed BJP into one of the largest political organisations in the world & will now play a bigger role in building #NewIndia," tweeted Shah's cabinet colleague Smriti Irani.
Irani, who defeated opposition Congress chief Rahul Gandhi in his family bastion of Amethi in the election, was handed the ministry of women and child development.
Facing major challenges with the economy, job creation and a farm debt crisis, Modi replaced around three dozen ministers and deputies from the last administration, bringing in many new lawmakers.
- Major rejig -
Sitharaman, 59, became India's first full-time woman finance minister after a similar landmark stint as defence minister. Former premier Indira Gandhi had briefly held the defence and finance portfolios in the 1970s.
As finance minister Sitharaman will be expected to steer India's course through reforms and arrest an economic slowdown in Asia's third-largest economy.
Sithamaramn could get an early idea of economic difficulties ahead when economic growth
figures for January-March are released later Friday.
The previous finance minister, Arun Jaitley, asked not to be considered for a government post because of ill health.
The induction of Jaishankar, a China expert and a former ambassador to Washington, as the new foreign minister was seen as a sign that Modi will put more emphasis on
diplomacy in the sensitive area around India in his second term.
Jaishankar, who was the top foreign ministry official until his retirement last year, was an influential advisor to Modi on diplomacy during his first five years in power.
Jaishankar took the mantle from Sushma Swaraj, a party veteran who underwent a kidney transplant in 2016 and has been beset by poor health.
Modi also set up a new ministry of water power in keeping with his promise to make safe drinking water a priority for his government.
Modi, 24 cabinet rank ministers and more than 30 deputy ministers were sworn in at the presidential palace on Thursday.
Presidents and prime ministers from neighbouring Bangladesh, Sri Lanka, Nepal and the Maldives were present, but arch-rival Pakistan was not among those invited.
Associated Press of Pakistan Corporation (APPC) - Pakistan's Premier News Agency
KARACHI – Pakistani rupee continues to face blows against the US dollar in the inter-bank market as the deadlock between Islamabad and IMF continues.
During the intraday trading on Tuesday, the local currency dropped against the US dollar, moving down nearly 0.06 percent. Before noon, PKR was being traded at 286.37, with a decline of Rs0.18.
Earlier this week, the embattled rupee faced a setback and it was closed at 286.19 against the greenback in the inter-bank.
The rupee continues to face back-to-back blows amid deadlock between the Pakistani government and the multilateral lender.
KARACHI – The price of a single tola of 24-karat gold in Pakistan is Rs 228,900 on Tuesday. The price of 10 grams of 24k gold was recorded at Rs197,190.
Likewise, 10 grams of 22k gold were being traded for Rs180,756 while a single tola of 22-karat gold was being sold at Rs 210,832.
Note: The gold rate in Pakistan is fluctuating according to the international market so the price is never been fixed. The below rates are provided by local gold markets and Sarafa Markets of different cities.
|Lahore||PKR 228,900||PKR 2125|
|Karachi||PKR 228,900||PKR 2125|
|Islamabad||PKR 228,900||PKR 2125|
|Peshawar||PKR 228,900||PKR 2125|
|Quetta||PKR 228,900||PKR 2125|
|Sialkot||PKR 228,900||PKR 2125|
|Attock||PKR 228,900||PKR 2125|
|Gujranwala||PKR 228,900||PKR 2125|
|Jehlum||PKR 228,900||PKR 2125|
|Multan||PKR 228,900||PKR 2125|
|Bahawalpur||PKR 228,900||PKR 2125|
|Gujrat||PKR 228,900||PKR 2125|
|Nawabshah||PKR 228,900||PKR 2125|
|Chakwal||PKR 228,900||PKR 2125|
|Hyderabad||PKR 228,900||PKR 2125|
|Nowshehra||PKR 228,900||PKR 2125|
|Sargodha||PKR 228,900||PKR 2125|
|Faisalabad||PKR 228,900||PKR 2125|
|Mirpur||PKR 228,900||PKR 2125|
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