Here are the 10 latest developments in this big story:
Amid protests in the Lok Sabha, YSR Congress's notice was taken up by Lok Sabha Speaker Sumitra Mahajan, who, however, deferred it till Monday saying the "house is not in order". The Congress criticized the decision, accusing the government of staging the protests. Soon after the TDP announced its exit, its members protested at parliament and shouted "talaq, talaq, talaq (divorce)."
The YSR Congress has nine members in the Lok Sabha and the TDP has 16. A party needs the support of at least 50 members for its no-trust motion to be accepted.
Mr Naidu contemplated supporting YSR Congress's no-confidence motion before deciding to cut loose from the ruling coalition and make his own move.
The two no-confidence motions, with their target audience back in Andhra Pradesh ahead of polls next year, do not endanger the government, which has enough numbers in the Lok Sabha.
Mr Naidu had stopped short of exiting the National Democratic Alliance (NDA) last week when he pulled out two ministers from the Modi government. Jagan Reddy's no-trust move and reports that the BJP was in talks with him apparently forced his hand.
Mr Naidu was also rattled by Jana Sena boss Pawan Kalyan's barbs at him at a public meeting on Wednesday. The actor-politician accused the Chief Minister's son and minister Nara Lokesh of corruption and also alleged that the chief minister had struck a deal with the BJP. For Mr Naidu, staying on in the NDA had become increasingly untenable without compromising his credibility in the state.
The BJP put a positive spin to its largest southern ally formally opting out. "Far from being a threat, TDP's exit is a timely opportunity for the BJP to grow in Andhra Pradesh," said BJP spokesperson GVL Narasimha Rao. He added that his party would become a dominant player in Andhra Pradesh within a year and repeat its success in Tripura, where it ended 25 years of Left rule.
The first formal exit of an ally is a psychological blow for the BJP on the back of its bypoll disaster in Uttar Pradesh and Bihar; the party was stunned as it lost two strongholds in UP on Wednesday.
Another ally Shiv Sena, which has needled the BJP for over two years and has said it will go it alone in Maharashtra, declared that "the Modi wave is over". Sena sources say it is yet to decide on the no-trust motion. Maharashtra Chief Minister Devendra Fadnavis and another senior leader are believed to be in talks with the Sena.
Mr Naidu addressed his party leaders and parliamentarians yesterday through video con and reportedly said the bypoll results reflected an anti-Modi and anti-BJP wave.
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