To fans he is the “Lion of Gujarat”, saviour of Hindus and the brains behind one of India’s richest states. To critics he is a “merchant of death” with the blood of thousands of Muslims on his hands.

But love or hate Narendra Modi, the Hindu nationalist and Chief Minister of the western state of Gujarat has now staked his claim to leadership of his party - and perhaps his country.

His Bharatiya Janata Party (BJP) won 117 out of 182 seats in a local assembly election yesterday that became a barometer for the looming national elections. Congress won just 59 seats in the state poll that was spread over two weeks and which revived claims that Mr Modi had encouraged the slaughter of at least 2,000 Muslims in rioting in Gujarat in 2002.

“This is a victory of the 55 million people of Gujarat,” Mr Modi, who denies responsibility for the riots but won a state election a few months later on a virulently antiMuslim platform, said. “This historical verdict of people of Gujarat will bring qualitative change in the prevailing Indian politics.”

The result – although expected – was a blow to Congress, which leads the coalition federal Government and had hoped that a surprise victory would allow it to call a general election next year, instead of in 2009. It was particularly disappointing for Sonia Gandhi, the Italian-born Congress leader, and her 37-year-old son and presumed heir, Rahul, who jointly led the campaign in Gujarat.

Abhishek Singhvi, the national spokesman of Congress, admitted that his party had expected a much narrower margin. “But electoral victories can never validate the violation of certain basic values,” he said. “Lots of people have won several elections but have been judged poorly by history.”

Until the result yesterday the BJP had been in disarray, ever since its defeat in the national elections in 2004. Rajnath Singh, the national president of the BJP, attributed the victory yesterday to the ideology of his party as much as to Mr Modi. “The results have sent a message across the country that if any party can do development work it is the BJP,” he said.

But the outcome presents the BJP with a dilemma by spotlighting Mr Modi, 57, as its most popular and charismatic leader and an obvious contender to be head of the party. The BJP chose L. K. Advani as its leader before the Gujarat election and many senior members dislike the autocratic style of Mr Modi.

The United States, the European Union and other Western governments also face a dilemma about whether to lift travel bans on Mr Modi that were imposed because of the Gujarat riots.

Mr Modi began his election campaign by focusing on the economic growth of Gujaratbut he soon reverted to his trademark pro-Hindu, antiMuslim rhetoric after Mrs Gandhi called his government “merchants of death” in an election rally.

A media sting also exposed the complicity of the Modi government in the 2002 riots, which started after 59 Hindu pilgrims died in a train fire in Gujarat. The fire was blamed on a Muslim mob initially, but an inquiry concluded that it was accidental.

Mr Modi’s fighting talk

“What would an Italian know about Ram?” – speech in September criticising Sonia Gandhi’s lack of understanding of Hinduism

“Sister Sonia is a guardian of terrorists” – election rally in December, complaining that a death sentence had still not been carried out on Mohammed Afzal, despite his conviction for an attack on India’s Parliament in 2001. “I want to tell her ‘If you don’t have the courage, send him to Gujarat. We will hang him here’,” he said

The Gujarat government admitted that police had shot dead Sohrabuddin Sheikh, a Muslim, on the pretext that he was conspiring to kill Mr Modi. At a rally in December Mr Modi asked what should have been done to a man who was found in possession of weapons and had relations with Pakistan. When the crowd shouted “Kill him! Kill him!” he replied: “Does my government need Sister Sonia’s permission for this?”

“If you have the guts, Manmohan Singh, arrest me tomorrow morning” – rally after the Prime Minister suggested reopening an investigation into the 2002 Gujarat riots

“If the BJP loses there will be celebrations in Islamabad” – election campaign in 2002

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