The Lok Sabha election results in Bihar have yet again proven the significance of chief minister Nitish Kumar in the state's predominantly triangular politics, as well as his remarkable ability to come back exactly when many others have written him off. In the recent Lok Sabha elections, Nitish Kumar's Janata Dal (United) [JD(U)] contested 16 seats and won 12. The BJP won 240 Lok Sabha seats, falling 32 seats short of a majority.
The BJP needed four allies to obtain a majority: N Chandrababu Naidu's TDP, which has 16 seats, Nitish Kumar's JDU (12), Eknath Shinde's Shiv Sena (7), and Chirag Paswan's Lok Janshakti Party-Ram Vilas (5). TDP chairman Chandrababu Naidu and JDU's Nitish Kumar have emerged as kingmakers of National Democratic Alliance (NDA at this critical time, shares of companies based in Bihar and Andhra Pradesh have been soaring. Some companies based in Bihar or with facilities there may gain even more from the political climate.
According to Arun Kejriwal, founder of Kejriwal Research and Investment Services, there has not been industrialisation in the state of Bihar for various reasons, and the fact that Nitish Kumar is now an important ally of the government, which is not in majority. Some concessions to the state might result in incentives for industrialisation, thereby providing for employment and state growth. While not much industry has occurred at this time, those who are looking to invest in this state beyond natural resources are doing so.
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