New Delhi: The BJP's heavy defeat in Bihar, a second setback for Prime Minister Narendra Modi's party after Delhi, will galvanise opposition parties who have blocked key reforms like the Goods and Services Tax or GST. Stocks and the rupee are expected to drop when markets open on Monday. (Bihar election Results: Full coverage)
The BJP and its allies got only 58 seats, with the rival Grand Alliance led by Chief Minister Nitish Kumar winning 178 seats in the 243-member Bihar Assembly. (Bihar Election Results: Constituencies)
"It raises the likelihood that the Opposition will use this mandate to block important bills," said Milan Vaishnav of Carnegie Endowment for International Peace.
"The Bihar elections verdict will push back the reforms process as the government will prioritise social spending over fiscal management. GST will get delayed, land bill will get postponed, other economic reforms like paring fuel subsidy will take a back seat," said brokerage house IIFL.
Investors are already fretting over the speed of change in the current regime; PM Modi came to power last year on the promise of economic reforms and more jobs.
The BJP and its allies got only 58 seats, with the rival Grand Alliance led by Chief Minister Nitish Kumar winning 178 seats in the 243-member Bihar Assembly. (Bihar Election Results: Constituencies)
"It raises the likelihood that the Opposition will use this mandate to block important bills," said Milan Vaishnav of Carnegie Endowment for International Peace.
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"The Bihar elections verdict will push back the reforms process as the government will prioritise social spending over fiscal management. GST will get delayed, land bill will get postponed, other economic reforms like paring fuel subsidy will take a back seat," said brokerage house IIFL.
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Investors are already fretting over the speed of change in the current regime; PM Modi came to power last year on the promise of economic reforms and more jobs.
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