The ruling Bharatiya Janata party has lost control of a crucial southern state to the Indian National Congress in a closely watched election, dealing a rare political setback to prime minister Narendra Modi a year before a national poll.Congress won in 135 of the 224 seats that were up for grabs in the Karnataka state assembly, according to results published by the Election Commission of India. The BJP won in 66 seats, putting Congress in position to form a government without a coalition partner.

Newly elected Congress party lawmakers in the state were due to meet on Sunday evening to begin talks on forming a government.

Karnataka is one of India’s wealthiest states and home to the tech hub of Bengaluru. The defeat means the BJP will lose the only state it governs in the country’s south.