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Gandhi gives up bid to lead India
(Agencies)
Updated: 2004-05-18 21:27

Sonia Gandhi no longer wants to be India's first foreign-born prime minister, members of her Congress party and its allies said Tuesday, citing security fears that overshadow the country's top political dynasty.

Sitaram Yechury, a member of the Communist Party of India-Marxist, a Congress party ally was told that she would not be prime minister.


Sonia Gandhi leaves after addressing the media following meeting Indian President A.P.J. Abdul Kalam at the forecourt of Presidential Palace in New Delhi, India, Tuesday, May 18, 2004. [Reuters]

"A delegation of Congress met us and informed us that there will be a change of leadership of the Congress Parliamentary Party and the CPP will meet to elect a new leader," Yechury said outside Gandhi's New Delhi residence.

All bets have been placed on Manmohan Singh as the new Congress candidate for prime minister. He was the architect of India's economic liberalization program during the last Congress-led government from 1991 to 1996 and many believe he would be able to strike a balance between demands for leftists and policies that benefit businesses.

Investors fear that if she becomes prime minister Gandhi would have to backtrack on her pledge to go forward with economic liberalization, or that the leftists could block key reforms such as the privatization of state-run companies.

That sent markets plummeting on Monday, when the Bombay Stock Exchange, the Sensex, had its biggest drop in its 129-year history.

The benchmark index of the Bombay Stock Exchange, the Sensex, ended up 8.6 percent at 4,877.02 points on the news Tuesday.

 
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