Indian Prime Minister Narendra Modi´s party on Tuesday lost the rule of Maharashtra, which includes the financial capital of Bombay, after a short-term government coalition collapsed.
The National People´s Party of India (BJP) won the largest number of seats in elections last month, but that was enough for you to form a single government.
The party succeeded in reaching an agreement with a senior NCP leader on Saturday, but the deal collapsed after Congress leaders rejected the deal.
MP Devendra Vadnavis resigned as prime minister on Tuesday, telling reporters his party could not form a government.
Although Modi ruled the country´s richest state in a government coalition with its right-wing regional ally, Shiv Sena, the alliance collapsed after the October election over a power-sharing dispute.
Yemen´s Shiv Sena party and its ideological rival, the leftist National Congress Party, are expected to seek a government coalition.
"The fact is that these little parties gather together only to remove Bharatiya Janata from the state," said Daval Kulkarni, who has written a book about the Shiv Sena party.
India is experiencing an economic slowdown, and the loss of Maharashtra, whose capital Bombay is home to business, stock exchange and attractive Bollywood film, will be a blow to Modi.
