Mumbai, May 16 (IANS): A report has claimed that the Bharatiya Janata Party is set to suffer a net loss of seats in the ongoing general elections but will emerge as the largest party.

The Economist Intelligence Unit (EIU) report expects the BJP to form a coalition government after elections with the support of regional parties and incumbent Prime Minister Narendra Modi securing a second term in office.

EIU expects at least three regional parties - the Biju Janata Dal, the Telangana Rashtra Samithi, and the Yuvajana Shramika Rythu Congress Party, to back the next BJP-led government.

"The presence of coalition partners will help to prevent the sort of disruptive and poorly considered policy making that was seen on occasion during the BJP's previous term," the reports said.

Besides the coalition partners in government will prove to be a check on the BJP's right-wing Hindu nationalist instincts.

According to Shreyans Bhaskar, a Research analyst with The Economist Intelligence Unit, "The need to keep coalition allies sweet will pressure the next government into raising public expenditure, which will add to the fiscal strains created by the government's populist election pledges".

"As the BJP seeks to keep relations with its coalition partners smooth, the influence of the BJP's right-wing Hindu affiliates and allies will be diminished in the next administration," said EIU.