Manmohan Singh, a 71-year-old economist, kicked off India?s economic reforms more than a decade ago. He was designated Prime Minister this week after Gandhi, who had led her Congress party to a shock election win, declined the job. Singh, a Sikh, is India?s first non-Hindu Prime Minister.

Dressed in his trademark loose white shirt and trousers and a neatly-tied blue turban, the Oxford-educated former central bank governor took the oath in english on Saturday. The hero of India?s economic reforms hence took over as the 13th Prime Minister of the world?s biggest democracy, bringing the venerable Congress party back to power after eight years.

More than 65 ministers, decided after marathon negotiations within the Congress-led coalition, were also to take the oath. President Abdul Kalam administered the oath of office to Singh in the main hall of the presidential palace, watched by Congress leader Sonia Gandhi and her two children and scores of political leaders and officials.

Of the ministers, 28 will be of cabinet rank, including former Finance Ministers Pranab Mukherjee and P. Chidambaram. No portfolios have been announced. However, local media said Singh was likely to retain the defence and finance ministries for himself. Former diplomat Natwar Singh was likely to be made External Affairs Minister.

In hectic negotiations over the past few days, the coalition ? which named itself the United Progressive Alliance ? managed to resolve squabbles over ministerial positions and was close to finalising a policy agenda, party officials said.

Markets have been volatile, fretting over how the disparate alliance will pull together on policy issues and worrying that the country?s crucial economic reforms may be derailed. A draft of the Common Minimum Programme stipulates the new government would drive towards an annual 7-8 percent expansion in the economy and increased investment in agriculture, D. Raja, a Communist Party of India leader, told Reuters.

The government would encourage foreign investment and reduce the fiscal deficit but slow down privatisation of state firms, other party officials said. There were few surprises in the policy agenda, which also called for deeper ties with the United States and promoting friendly ties with neighbours.

?I think the approach is right?, said Tapan Kumar Bhaumik, of the Confederation of Indian Industry lobby group. ?It is an extension of reforms to those areas which were neglected. Reforms will be taken to the state level which is what is required now.?

But another analyst said the devil would be in the details. ?The government has set growth targets, but it has not spelt out how it will bridge the deficit and meet those targets?, said Gopi Shenoy, assistant vice-president at IDBI Capital Markets.

At least 18 regional, socialist and communist parties have pledged to support the coalition. The communists have said they will not join the government but the others have been jockeying for ministerial positions.

The formula thrashed out was that each ally would be given one ministerial berth for every four lawmakers in parliament. Congress has only 145 seats in the 545-member house and its committed allies have another 70-odd. Communist parties will provide support for a majority.

Peace with Pakistan, a priority

Singh has pledged to give top priority to carrying on a nascent peace process with nuclear neighbour Pakistan, days before the South Asian rivals were due to hold talks on nuclear confidence-building.

But analysts have questioned whether Congress was willing to offer concessions Pakistan wants over the divided state of Kashmir, at the heart of decades of hostility between the countries and the cause of two wars.

Analysts are pessimistic about prospects for early progress on a promised India-Pakistan dialogue and some worry Pakistan?s military may take advantage of the transition in New Delhi by promoting an upsurge of insurgent incursions into Kashmir.

On Friday, India?s army chief said that more than 3,000 Muslim militants were ready to slip into Indian Kashmir from Pakistan. But a senior Pakistani army officer rejected the charges.

Meanwhile, India?s new government has postponed nuclear weapons talks with Pakistan due later this week in order to give Prime Minister, Manmohan Singh, a chance to settle his cabinet, Pakistan?s Foreign Ministry said yesterday.

Senior Foreign Ministry officials from both sides were due to discuss establishing confidence building measures with regard to each other?s nuclear arsenals tomorrow and on Wednesday. But Singh is still finalising his cabinet.

?Today the Government of India has requested us for the postponement of the talks on nuclear CBMs because as a result of the recent transition in leadership an External Affairs Minister has not yet taken office?, the Pakistan Foreign Ministry said in a statement. ?India has proposed that the talks...could be held two days before the Foreign Secretary level talks?, it added, referring to talks expected to take place either later this month or in June. The Pakistan side said it looked forward to an early scheduling of nuclear and foreign secretary talks.

Singh has already made peace with Pakistan a priority and will be picking up where his predecessor left off, but the meeting scheduled when Atal Behari Vajpayee?s Hindu nationalist led government was still in power has come round too soon.

Kamil Zaheer