Gaur was associated with Rashtriya SwaYamsevak Sangh since 1946. He was also a founder member of Rashtriya Mazdoor Sangh. He was Secretary of Jan Sangh in Before becoming politically active, he also worked in Bhopal Textiles Mill and participated in several movements for workers. Gaur also participated in a number of national-level movements like agitation against Emergency, Goa Independence and Satyagrahas in Delhi, Beruwadi Saheb Punjab and other states. Gaur was detained for 19 months during Emergency.
"Drinking is a fundamental right and it is a status symbol too".
Babulal Gaur was first elected to Vidhan Sabha in a by-election in Bhopal South constituency in the year 1974 as an independent supported by Janata Party. He was Minister for Local Administration, Law and Legislative Affairs, Parliamentary Affairs, Public Relations, Urban Welfare, Housing (Urban) & Rehabilitation and Bhopal Gas Relief and Rehabilitation from 7 March 1990 to 15 December 1992. Gaur was Leader of Opposition in Madhya Pradesh Vidhan Sabha from 4 September 2002 to 7 December 2003.
Gaur has conferred the title of Varshshri in an opinion poll conducted by Nai Duniya,
Babulal Gaur was Chief Minister of Madhya Pradesh from 23 August 2004 to 29 November 2005.