Economics

Modi's Bihar State Setback May Spur Change of Political Tactics

  • Bihar defeat hurts Modi's chances of controlling upper house
  • India opposition has blocked national goods-and-services tax
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Wounded by another state election defeat, Indian Prime Minister Narendra Modi might need to shift gears and show his softer side in order to push through his showcase economic reforms.

The win by Modi’s opponents in India’s third-most-populous state gives them political momentum. Sunday’s results also show he can’t bank on winning control of the upper house of the federal legislature, where lawmakers appointed by India’s 29 states have blocked measures including a national sales tax.