India's ruling Congress party nominated Finance Minister Pranab Mukherjee for president , setting the stage for a potential election battle in coming weeks that would test the strength and cohesion of the government at a time when it's struggling to deal with the nation's economic slowdown.
Congress president Sonia Gandhi announced the decision after meeting with senior political leaders from Congress and its allies, praising Mr. Mukherjee for a "long and distinguished career of public service" and urging all parties to back him.
But this year's contest, which is slated for July 19, has taken on greater significance as Congress struggles to hold together its fragile coalition, the United Progressive Alliance. One coalition member, the Trinamool Congress led by West Bengal Chief Minister Mamata Banerjee, is backing an alternative candidate, former president and rocket scientist A.P.J. Kalam, and other parties have put forward other names. Ms. Banerjee on Friday issued what she called "a clarion call" to all parties to support Mr. Kalam.The post of president in India is largely ceremonial. The official, who isn't elected directly by ordinary voters but rather by members of Parliament and state legislatures, has the authority to invite parties to form governments in times of political crisis and can offer non-binding advice on legislation and judicial nominations. The president also hosts many state functions. The real powers of governance lie with the prime minister and Cabinet.
Mr. Mukherjee, 76 years old, is regarded as a savvy veteran of the Congress party, a political maestro and go-to fixer in moments of crisis. He has held an array of other senior positions over the years, including defense minister and foreign minister.
Congress and its allies control about 43% of the vote for the presidential election. The main opposition Bharatiya Janata Party and its allies control 28% of the vote.The winner of the presidential contest, which is held every five years, will replace Pratibha Patil, a 77-year-old former Congress party politician who has served as a state governor and a Member of Parliament and became the first woman to hold the presidency in 2007.
If Mr. Mukherjee does prevail, the government would have to select a new finance minister at a critical moment when India is facing a variety of economic woes. Gross domestic product growth slowed to a near-decade low of 5.3% in the quarter ended March 31, industrial production numbers released this week were disappointing, inflation remains high and twin fiscal and current account deficits are pressuring public finances. Europe's economic turmoil has made foreign investors skittish about India, one reason the rupee has fallen 15% against the dollar since early February.
Mr. Mukherjee's critics say he hasn't been aggressive enough as finance minister in pushing key reforms like removing costly fuel subsidies and lifting caps on foreign investment in sectors like insurance and retail, leaving it to the central bank, the Reserve Bank of India, to deal with the economic crisis. The RBI is meeting on June 18 and will consider whether to slash interest rates further after cutting them for the first time in three years in April.