May 19 (Bloomberg) -- India’s Bahujan Samaj Party will extend the support of its 21 lawmakers to India’s new Congress- led government, without joining the ruling coalition, Mayawati, the party’s leader, said today.

The backing of Mayawati, who espouses the rights of people at the bottom of India’s caste hierarchy, would enable Prime Minister Manmohan Singh to achieve a majority in parliament.

Singh’s Congress-led alliance scored the biggest election win in two decades on May 16, capturing 261 lower-house seats. It needs the help of about a dozen lawmakers to cross the half way mark in parliament. Mayawati, chief minister of India’s most populous state, said in a televised speech that she had spoken with Singh.

In his second term, Singh told his party today he will focus on employment and job creation, adding that the country faced “daunting challenges.” Political stability will make India a more attractive investment destination as Singh, 76, seeks the funds to stimulate Asia’s third-largest economy.

Mayawati, who uses one name, runs northern Uttar Pradesh. Her party added two seats in the national election, in which it had expected to double its tally.

Congress lawmakers today picked Singh as their leader. He will probably name his ministers this week with Pranab Mukherjee favorite to become finance minister, the Economic Times reported. The new government may take the oath of office on May 22, Times Now reported.

Mukherjee took over the finance portfolio for the last six months of the previous government, after Palaniappan Chidambaram moved to the home ministry following the terrorist attacks on Mumbai.

To contact the reporters on this story: James Rupert in New Delhi at jrupert3@bloomberg.net; Cherian Thomas in New Delhi at Cthomas1@bloomberg.net.

Last Updated: May 19, 2009 03:48 EDT