Prime Minister Atal Bihari Vajpayee took office in October 1999 after a September 1999 general election in which a BJP-led coalition of 13 parties called the National Democratic Alliance emerged with an absolute majority. The coalition reflects the ongoing transition in Indian politics away from the historically dominant and national-based Congress Party toward smaller, narrower-based regional parties. This process has been underway throughout much of the past decade and is likely to continue in the future with the smaller parties aligning with either the Congress or the BJP.

The Bharatiya Janata Party emerged as the single-largest party in the September 1999 Lok Sabha (lower house of Parliament) elections. The BJP currently leads a coalition government under Prime Minister A.B. Vajpayee. Party President Venkaiah Naidu was elected by the Party National Executive in May 2002. The Hindu-nationalist BJP draws its political strength mainly from the "Hindi belt" in the northern and western regions of India. The party holds power in the states of Gujarat, Jharkand, Goa, Arunachal Pradesh, Madhya Pradesh, Rajasthan, Chhattisgarh, and Orissa--in coalition with the Biju Janata Dal--and in Haryana--in coalition with the Indian National Lok Dal. Popularly viewed as the party of the northern upper caste and trading communities, the BJP has made strong inroads into the lower caste vote bank in recent national and state assembly elections. In trying to increase its appeal, a Dalit southerner, Banguru Laxman, became party president until March 2001, when he was accused of corruption and quit the position. He was succeeded by Jana Krishnamurty, followed by current party president Venkaiah Naidu. The party also must balance the competing interests of members such as Hindu nationalists, who are advocating construction of a temple on a disputed site in Ayodhya, and those who see the BJP as the party of economic and political reform.

The Congress (I) Party, led by Sonia Gandhi (widow of the late Prime Minister Rajiv Gandhi), holds the second-largest number of seats in the Lok Sabha. Priding itself as a secular, centrist party, the Congress has been the historically dominant political party in India. Its performance in national elections has steadily declined during the last decade. The political fortunes of the Congress have suffered badly as major groups in its traditional vote bank have been lost to emerging regional and caste-based parties, such as the Bahujan Samaj Party and the Samajwadi Party. Delivering a blow to the Congress Party's standing as severe as it was unexpected, elections in five states in November 2003 reduced the number of Congress ruled states from 14.5 to 11.5 - the Congress shares power with the People's Democratic Party in the state of Jammu and Kashmir.

The Janata Dal (United) Party claims to be a national party but currently holds significant strength only in Karnataka and Bihar. It advocates a secular and socialist ideology and draws much of its popular support from Muslims, lower castes, and tribals.

The next general election will be held in 2004.