Question

how parties are recognised as a state party

Answer 1

State party can compete only in a particular state

National party can compete all over the nation

National party has more than the state party

Answer 2

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State Parties

A party should win at least one seat in the Lok Sabha for every 25 seats or any fraction thereof allotted to that State. Under the liberalised criteria, one more clause that it will be eligible for recognition as state party if it secures 8% or more of the total valid votes polled in the state.