NEW DELHI (Agencies) - Indian Prime Minister Manmohan Singhs ruling coalition won an overwhelming election victory on Saturday, boosting hopes of a stable government as the emerging Asian power faces economic downturn and tensions with Pakistan. Singhs Congress-led coalition - UPA - riding on the back of years of economic growth, did better than expected and will probably be only just short of an outright majority in Lok Sabha, according to data from the election commission and projections by TV channels. The people of India have spoken, and spoken with great clarity, Singh told reporters. The victory over the Opposition Hindu-nationalist-led alliance -NDA - means the left-of-centre Congress may find it easier to form a stable coalition with smaller parties and be less vulnerable to pressure on issues like economic reforms. As results trickled in, celebrations started at the Congress party headquarters and Sonia Gandhi declared that Manmohan Singh will be the Prime Minister again. Eventually the people of India know whats good for them and they always make the right choice, Sonia Gandhi, the head of the Congress party, told reporters. Congress party supporters carrying banners of star campaigners Rahul and Priyanka Gandhi, set off firecrackers in celebration on the partys return to power. The Congress party has won 183 seats and was leading in 22 others in a House of 543, its best performance after 1991 when it secured 244 seats. And with allies DMK and Trinamool Congress, who have done exceedingly well, the Congress-led UPA is poised to get 261 seats. The NDA led by BJP was far behind at 157 seats with the saffron party alone winning 103 seats and was ahead in 13 others. BJP ally Shiv Sena has won 10 seats and was ahead in one while other allies Akali Dal won 4 seats. Its another ally RLD has won four seats and was ahead in one. Third Front of communist and smaller groups would take 58 seats, the TV channel said. The BJP, accused by rivals of a divisive agenda, effectively conceded defeat by saying that Congress had the biggest mandate. Pakistan will top the foreign policy agenda of the new administration with the US expected to renew calls to New Delhi to reduce tensions with Pakistan to help stabilise the situation there. Ties with Pakistan have been in deep-freeze since an attack on Mumbai by Pakistan-based militants last November. Singh, 76, said he wanted a cabinet role for Rahul Gandhi, heir apparent of the Gandhi-Nehru dynasty who is seen as the architect of the Congress partys resurgence in northern states. Mayawati, the controversial chief minister of Uttar Pradesh who was tipped as a possible kingmaker, did not make significant electoral gains to wield influence in a possible coalition. The CPI-M, which had 43 seats in the outgoing Lok Sabha, has won only 17 seats. The CPI, which had 10 seats, has bagged only 3 seats. Forward Bloc and Revolutionary Socialist Party have won two seats each. The Trinamool Congress, which tied up with Congress, has emerged as a leading party in the UPA after Congress bagged 17 seats. The other ally, DMK, comes next with 16 wins and leading in two seats. The Fourth Front, whose parties had allied with the UPA but fought against Congress in Bihar and UP, also floundered. The SP, which rescued the government on the Indo-US nuclear deal issue, emerged weaker from the hustings winning 21 seats and leading in two. It had 39 seats in the outgoing House but still managed to emerge as the single-largest party in UP. Lalu Prasads RJD, which was the largest constituent of UPA after the Congress with 24 seats, bit the dust leading in one seat and won only 3 seats. The other Bihar constituent of UPA, LJP led by Ram Vilas Paswan drew a blank in 12 constituencies it contested. Paswan himself lost in Hajipur. In Tamil Nadu, while the DMK did well its alliance partner Congress lost in eight seats. The losers included Union Ministers Mani Shankar Aiyar, E V K S Elangovan and former minister R Prabhu. The AIADMK which made a big issue of the Sri Lankan Tamil issue, won in 9 seats. Its ally, PMK drew a blank in the seven constituencies it contested. Another ally, MDMK, also lost badly winning only one of the four seats it contested. Its leader Vaiko lost in Virudhunagar to a political novice from Congress. Prime Minister Manmohan Singh will resign on Sunday (today) and the process for formation of a new government headed by him is expected to be completed by Monday (tomorrow). Singh, often the target of attack from the BJP, sought cooperation of the main Opposition to open a new chapter. We should open a new chapter in relations between the government and principal Opposition party. We seek your cooperation, Singh told Advani who called to congratulate on him on UPAs victory. Speaking after the BJPs parliamentary board meeting, partys General Secretary Arun Jaitley said LK Advani had wanted to resign after the poll debacle but the party has not allowed him to do so. Advani would continue to guide the party, he added. Analysing the BJP poll debacle Arun Jaitley said no single factor could be attributed for the defeat as the party had done well in some states while faring badly in others. After repeatedly targeting him during the campaigning, Advani called up Prime Minister Manmohan Singh to congratulate them on the victory of the Congress-led UPA in Lok Sabha elections. Meanwhile, the White House warmly congratulated India on its historic national election. President Obama congratulates India on its historic national elections, White House spokesman Robert Gibbs said in a statement. By successfully completing the largest exercise of popular voting in the world, the elections have strengthened Indias vibrant democracy and upheld the values of freedom and pluralism that make India an example for us all. President Obama looks forward to continuing to work with the Indian government to enhance the warm partnership between our two countries.