A coalition government is one in which multiple political parties come together and often reduce the dominance of the party that has won the highest number of seats. Coalition governments are formed as seldom does a political party win the necessary number of seats to form the government on its own. In India, the first coalition government to complete its full-term was the Atal Bihari Vajpayee-led National Democratic Alliance from 1999 to 2004. While some say that coalition governments generate more inclusive policies, others believe that coalitions impose constraints on policymaking.

A Coalition Government might also be created in a time of national difficulty or crisis,
e.g. during war time or economic crisis. In such times, parties can form an all party coalition.
Impact of coalition Government on Indian politics can be understood from the instances below
(i) After the General Election in 2009, the United Progressive Alliance (UPA) (consisting of 13 separate parties) formed the government. Indian National Congress (INC) had to enter an alliance with many parties, including several regional parties to form a government at the Centre. This led to a new culture of power sharing and respect for the autonomy of State Governments.
(ii) In 2014 General Election, Bharatiya Janata Party won 282 seats and formed the government. It is for the first time since 1984 Indian general elections that a party has won enough seats to govern without the support of other parties. Though Bharatiya Janata Party formed the government, but no Central Government can ignore the federal structure of India.