Fitch says Bihar election results have shaken up the BJP but not the economic outlook

Credit rating agency Fitch said Bihar election results might have wobbled Prime Minister Narendra Modi’s Bharatiya Janata Party and its allies but has no impact on the medium term economic outlook.

Director in the Fitch Ratings' Asia-Pacific Sovereigns team, Thomas Rookmaaker, said that things will get tough for the NDA but government's economic agenda will remain intact.

"The election results are not likely to impact decisions by foreign investors in other states and a big win for the BJP in Bihar would not have led to sufficient support in the Rajya Sabha anytime soon anyway," said Rookmaaker.

Nitish Kumar-led Grand Alliance registered a thumping victory winning 178 of the 243-member assembly while the NDA won only 58 seats.

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Meanwhile, Fitch stated it expected the government to try and pass legislation via "ad hoc political deals, and if that does not work it may continue to resort to implementation of reforms at the state level."

One of the major hurdles the government is going to face is passing the GST bill, which is facing stiff opposition.

READ ALSO: BJP’s defeat in Bihar elections may resound till 2019! (Image: Indiatimes)