INDIA’S ruling Congress party was in turmoil on Thursday (june 14) after two key allies signalled they had lost confidence in Prime Minister Dr Manmohan Singh, whose coalition government has struggled to cope with mounting economic problems.
The party was forced to spring to the prime minister's defence, insisting he would remain in his post until general elections due by 2014, after the allies suggested he should be considered for the largely ceremonial position of president.
Congress was blindsided by the comments from West Bengal chief minister Mamata Banerjee, who has repeatedly thwarted proposed economic reforms despite being a member of the government, and Mulayam Singh, another powerful regional leader.
India will elect a new president on July 19 and Dr Singh has already made clear he has no interest in taking the post.
The prime minister, hailed as the architect of landmark economic reforms he introduced in 1991 when he was finance minister, has been widely criticised by business leaders and investors for weak leadership at a time when India is beset by slowing growth, dwindling foreign investment, and high inflation.
There was fresh evidence of the economic troubles on Thursday. Government data showed that exports from Asia's third-largest economy fell 4.16 per cent in May over the previous year, while inflation rose in the same month to 7.55 per cent.
