NEW DELHI: India's Congress party returned to power in general elections at the head of the ruling coalition.

Congress party president Sonia Gandhi proposed Dr Manmohan Singh stay on as prime minister. It was immediately approved by thumping of desks by newly elected party lawmakers in the Indian Parliament. This kicked off the process of government formation. Mrs Gandhi has been chosen as chairman of the Congress parliamentary group.

Following his unexpected election victory over the weekend, Dr Singh vowed to reverse a slowdown in growth that has hurt key sectors of the economy and led to loss of millions of jobs.

A Congress leader said Mr Pranab Mukherjee, who was foreign minister in the previous coalition, was likely to be the finance minister in Dr Singh's new Cabinet. Asked if the party had finalised Mr Mukherjee as the candidate for the post, former trade minister Kamal Nath said 'more or less'.

Mr Mukherjee, a veteran politician, had been heading the Finance Ministry since January.

Having won 262 of Parliament's 543 seats in the final tally, Dr Singh's coalition is now just 10 seats short of a parliamentary majority, boosting hopes of a stable government at a time when growth in Asia's third largest economy has slowed to its lowest level in six years.

His position was further strengthened after Ms Mayawati, the powerful leader of the Bahujan Samaj Party representing the lower castes, pledged her support for the new coalition.

Dr Singh will now submit the claim of the Congress-led United Progressive Alliance to form the next administration to President Pratibha Patil.

REUTERS, BLOOMBERG