Bihar sets back Modi's economic agenda for India

Significance

The National Democratic Alliance (NDA) led by Prime Minister Narendra Modi's Bharatiya Janata Party (BJP) won only 58. The result has implications for Modi's economic agenda and the broader use of identity politics for electoral gain.

Impacts

• State-level cooperation for Modi's reform agenda could decline.
• Public protests against the BJP's political and cultural agendas are likely to intensify.
• This may generate fresh criticism from key financial institutions such as credit ratings agencies.