"The result is unfortunate for the people of Gujarat. The people can't see the truth. The people of Gujarat deserve Modi. They are getting Modi," Ms Bhatt told a news channel in Ahmedabad.
Mr Modi, a BJP leader, won from the Maninagar assembly constituency on Ahmedabad's outskirts, defeating Ms Bhatt by more than 70,000 votes.
Asserting that she would continue to work for the people of Gujarat and for truth, Ms Bhatt rebuffed allegations that she was made a scape-goat by the Congress.
"There is not much development in Maninagar and many are afraid to speak the truth," said Ms Bhatt, adding that her fight was ideological.
She said her defeat would have no effect on the couple's campaign against Mr Modi.
"I'll continue to be in politics and keep fighting against Modi. I have always fought against injustice and fear and will continue to do so," she said.