Gandhi triumphs

Indian Prime Minister Atal Behari Vajpayee resigned yesterday after a shock election defeat that paved the way for Italian-born Sonia Gandhi's Congress party to take power in the world's largest democracy.

The result was a resounding rejection by the rural poor of Mr Vajpayee's "India shining" campaign motto, although Ms Gandhi's Congress was not expected to turn its back on a policy of gradually liberalising Asia's third-largest economy.

"The Congress party will take the lead to ensure our country has a strong, stable and secular government at the earliest," Ms Gandhi said in brief comments to reporters.

Ecstatic, if surprised, supporters beat drums and danced in the streets in New Delhi as the extent of the upset by Congress and the Nehru-Gandhi dynasty quickly became apparent within two hours of counting starting.

"I am in shock. This kind of a lead was never expected. This is all because of Rahul and Priyanka," said a jubilant Subhash Chand outside the Gandhi home, referring to Sonia's popular son and daughter who helped revitalise her campaign.

Sonia has revived India's oldest party after the death of her husband, former Prime Minister Rajiv Gandhi, in 1991. Both she and Rahul won seats in the new parliament.

The coalition led by Vajpayee's Hindu nationalist Bharatiya Janata Party (BJP) lost one-third of its MPs, including its foreign minister, punished by disaffected rural poor who feel excluded from India's economic boom.

Mr Vajpayee will stay as caretaker until a new government forms.

Ms Gandhi was meeting Congress leaders to discuss forming a government, which party officials said could happen within days but which will also have to rely for support on leftist parties after their strong gains. She is tipped to be prime minister.

With counting almost over, Congress and its allies were likely to win 218 seats in the 545-seat parliament and the BJP-led coalition 186. Left parties which have promised to support Congress were ahead in 63 constituencies.

The BJP, which polls tipped for certain victory only a few weeks ago, was shocked. "I am half heart-broken and half-stunned," said senior party leader and key campaign strategist Pramod Mahajan.

Analysts say the new government is likely to continue the reforms crucial as India strives to become a global economic player, but they might have to be repackaged to ensure benefits reach the poor and are not restricted to the urban upper classes.