India’s Modi gets first political bloody nose in Delhi

Since winning a broad mandate in national elections last May, and then repeating the feat in state elections across the country, India’s ruling Bharatiya Janata Party (BJP) has suffered a rude shock in Delhi’s state elections. Results are still trickling inthe BJP is projected to win less than 5% of the seats on offerbut Modi has already conceded defeat.

Spoke to @ArvindKejriwal & congratulated him on the win. Assured him Centre's complete support in the development of Delhi.

The victor is a fairly new political venture, the Aam Aadmi or “Common Man” Party, which could win as much as 90% of the seats in Delhi’s legislature. AAP is led by Arvind Kejriwal, who has campaigned on a promise to fight graft and lower the prices of food, water, and electricity. Kejriwal will be Delhi’s Chief Minister, the equivalent of a state governor in the United States.

Referendum on Modi?

An immediate test for Modi will be his government’s national budget, presented on February 28. The BJP has said it is set to announce major reforms to unleash manufacturing and to make doing business easier.

Promising a reform agenda has made Modi a darling of global investors; now he’ll need to make sure he doesn’t forget about India’s poor.

READ: The many hats of India’s Modi

CNN