Indian PM Modi's BJP suffers defeat in election seen as referendum

Indian Prime Minister Narendra Modi conceded defeat on Sunday for his governing Bharatiya Janata Party in a key regional election, a severe political setback.

An alliance of parties linked to the main opposition Congress party in the Bihar state assembly ran against the BJP. The result is considered as a referendum on Modi's economic program after his convincing victory in last year's national elections.

The BJP and its allies won less than half of the seats the opposition gained in the 243-member state assembly. The northeastern Bihar state is one of India's largest, with a population of 100 million.