Multi-party system
Several parties compete for power, and more than two parties have a reasonable chance of coming to power either on their own strength or in alliance with others. E.g., India (The National Democratic Alliance, the United Progressive Alliance and the Left Front).
The government is formed by various parties coming together in a coalition.
This system allows a variety of interests and opinions to enjoy political representation.
A multi-party system may often lead to political instability.
Party system evolves over a long time, depending on the nature of society, its social and regional divisions, its history of politics and its system of elections