This paper explains the complex of factors in the weakening of the Congress Party from the height of its power at the centre in 1984. They are connected with the rise of state and regional-based parties, the greater acceptability of BJP as an alternative in some of the states and at the Centre, and as a partner to some of the state-based parties, which are in competition with Congress. In addition, it demonstrates that even as the dominance of Congress has diminished, there have been substantial improvements in the economic performance and primary education enrolment. It is argued that V.P. Singh played an important role both in the diminishing of the Congress Party and in India’s improved economic performance. Competition between BJP and Congress has led to increased focus on improved governance. Congress improved its position in the 2009 Parliamentary elections and the reasons for this are briefly covered. But this does not guarantee an improved performance in the future. Whatever the outcomes of the future elections, India’s reforms are likely to continue and India’s economic future remains bright. Increased political contestability has increased focus on governance by Congress, BJP and even state-based and regional parties. This should ensure improved economic and outcomes and implementation of policies.