The BGA India team, led by Managing Director Anuj Gupta, wrote an update to clients on the elections in Bihar state.

Context

  • The Bharatiya Janata Party (BJP)-led National Democratic Alliance (NDA) government won 202 seats in the 243-member Bihar state assembly November 14, in turn extending the ruling party’s post-2024 national general election winning streak. The BJP’s historic victory, with the largest-ever seat share in the state assembly, is the latest in a series of decisive mandates for the party, starting with Odisha, Haryana, Maharashtra and Delhi.
  • The victory underscores voters’ preference for stability, job creation and clean governance over caste-based politics and corruption. A central plank of the NDA was creating 10 million jobs through infrastructure development and industrial growth, which was preferred over the opposition Indian National Developmental Inclusive Alliance (INDIA) bloc’s pledge of providing one government job per family. Issues with law and order and past political instability under the INDIA parties also weakened the opposition’s messaging.

Significance

  • The BJP’s focus is now expected to shift toward increasing its political presence in non-NDA states such as West Bengal, Tamil Nadu and Kerala. These states will all hold assembly elections in 2026, and the ruling party will look to build on its success there. While the Bihar results will provide further political momentum to the BJP, they are expected to adversely impact the opposition INDIA alliance.
  • The NDA government is expected to continue its emphasis on clean, stable governance that supports economic activity as well as on transparent administration and predictable policy frameworks. The focus is also expected to be on streamlined approvals, improved service delivery and tighter welfare systems to enable smoother governance and a better investment climate in coordination with the central government.
  • The decisive mandate will ensure continued reform momentum at both central government and state level in Bihar, aimed at sustaining India’s high GDP growth rate at around 8 percent with low inflation. The political stability is also expected to provide for a stable investment environment in the state, continued significant public expenditure on fast-tracking infrastructure while boosting both domestic and foreign investments.

Implications

  • For businesses and investors, the mandate signals a stable environment marked by policy continuity and an accelerated reform agenda under the NDA government at the national level, reinforced by strong electoral outcomes in key states of Delhi, Maharashtra and now Bihar. At the state level, Bihar is poised to deepen its transition toward good governance; infrastructure-led development; micro, small and medium-sized enterprise growth; and job-oriented investments. This trajectory enhances investor confidence, positioning Bihar as a predictable destination for long-term projects, particularly in the infrastructure, logistics, agricultural and energy sectors.
  • Key sectors of focus and growth will include food processing and agro-industries; logistics and infrastructure; green investments such as solar, biomass and power generation activities that align with the state’s clean-energy push; electric mobility and related infrastructure; and urban services and smart city systems.

If you have questions or comments, please contact BGA India Managing Director Anuj Gupta at agupta@bowergroupasia.com.

Best regards,

BGA India Team

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Managing Director

Anuj is a distinguished policy leader and strategist who has played a catalytic role across India’s government and private sector, guiding stakeholders through the country’s complex and evolving policy and investment landscape. As BGA’s India practice leader, he helps clients leverage the country’s rapid economic growth to advance their goals and strategies.  Anuj previously led public policy efforts for the Tata Group, India’s largest business conglomerate, where he advised more than 30 group companies on policy affairs strategy. His interventions directly influenced high-stakes outcomes across diverse sectors, including technology, finance and manufacturing.   Anuj spent a decade in the Indian and Abu Dhabi governments, where he ... Read More