Rahul Gandhi, the 37-year-old scion of India’s Nehru-Gandhi dynasty, was elevated to a key political position for the first time since he entered parliament three years ago amid speculation that the world’s largest democracy may face snap polls.

Mr Gandhi, educated at Harvard and Cambridge universities, will follow in the footsteps of his grandfather, Jawaharlal Nehru, and his father, Rajiv, to become general secretary of the ruling Congress party, effectively taking over day-to-day running of India’s largest party. The post is seen as a stepping stone to being prime minister.

The appointment comes as India’s coalition government has been torn apart by a bitter row over whether Delhi should sign up to a nuclear deal with Washington that would allow the country to retain its atomic weapons and buy reactors and uranium. The communist parties, whose support is essential for the government, vehemently oppose the deal.

Mr Gandhi, who last year called for a “fresh assessment of nuclear energy as a clean and safe source”, has remained silent over the current debacle.

He is seen as a pivotal figure in Congress circles, able to enthuse young people, who make up more than half of India’s 1 billion people.

There is no doubting his pedigree. A member of the Gandhi family has been in charge of India for 40 of the 60 years since independence. The clan blends the right to rule of British monarchy with the tragic glamour of America’s Kennedy family.

Rahul Gandhi’s great-grandfather, Jawaharlal Nehru, was India’s first prime minister. His grandmother, Indira, and father, Rajiv, also led the country. Both were assassinated.

After winning the 2004 general election, his mother, the Italian-born Sonia Gandhi, declined to follow her husband into office, opting instead to wield power from behind the throne. She appointed Manmohan Singh, a feted economist, as prime minister.

Yesterday, Congress activists took to the streets outside the party headquarters, beating drums and letting off fireworks, after Mr Gandhi’s elevation was announced.

Ms Gandhi’s decision to promote her son was seen as long overdue by analysts, who say that the country’s biggest party is in danger of “melting away”.

“The Congress party needs refreshing and reinvigorating. Rahul’s job is to do that,” said Mahesh Rangarajan, professor of history at Delhi University.

“Congress desperately needs a new team to bring back the party faithful, especially if elections are around the corner. In effect, Mrs Gandhi has appointed her son as general for a battle because her army is melting away.”

Mr Rangarajan said the younger Gandhi needed to “get into the villages and towns more”‘ because his first foray into politics highlighted his inexperience and naivety.

Mr Gandhi had conspicuously failed to win any new seats when he spearheaded the elections in India’s most populous state, Uttar Pradesh, earlier this year.

He lost out to the leader of the India’s dalits, or untouchables, Mayawati, a former teacher whose political guile saw her first become chief minister at the age of 35.

She succeeded this year by recreating the coalition of Muslims, low castes and high castes that once was the Congress’s political base.

Pran Chopra, a political commentator, said: “The new generation of politicians have their roots in caste and religion. They are street fighters with unquestioning followers who can work crowds. And they have won elections. Rahul has a lot to learn.”

Even without the prospect of early general elections - the next national poll is scheduled for 2009 - India has an unforgiving electoral cycle. In the next year, there are elections in Gujarat, Delhi, Madhya Pradesh, Rajasthan and Chhattisgarh, by which time almost a quarter of the population would have given its verdict on the latest Gandhi to seek their votes.

NEW YORK—Got your heart set on a pre-Christmas shopping expedition? Before you head to the mall, check out Smart Money reporter Kelli B. Grant’s guide for autumn bargain hunters:

What to buy in September

Cars: By September, next year’s models have already arrived and dealers are so eager to clear out old inventory that they’re happy to negotiate with you. Automakers also try to sweeten the pot but offering great cash incentives, reports Grant. Holiday airfare: To get the optimum price without sacrificing convenience, buy tickets for your Christmas holiday in September. Wait until the end of October and you may be forced to settle for higher prices, second tier airports and more layovers. Wine: Last year’s harvest begins arriving in stores in September. Because of the surplus of vino, winemakers face heavy competition and bottles tend to be priced to sell.

What to buy in October

Jeans: After the back-to-school rush dies down, retailers slash prices on the previous year’s styles to make room for new inventory. Toys: Those targeted at Christmas shoppers start making their debut in September; By October, storekeepers begin making price adjustments to stay competitive with other retailers. This is a good time to shop for the must-have toys that people will be fighting over come Christmas.

What to buy in November

Sneakers: Look to snag fashionable sneakers at cut-rate prices. The back-to-school crowd is all stocked up on sneakers by November and retailers are shifting their focus to winter gear, like boots. Wedding dresses: By November, the wedding season fervor has died down and the next cycle hasn’t quite commenced. The result: Empty bridal shops full of salespeople ready to bargain. Good negotiators can save between 15% and 25% on gowns, according to Grant.

Northern Rock endured a choppy morning on the stock exchange as speculation intensified over possible buyers for the troubled bank.

«business.guardian.co.uk», which closed at 194p on Friday, plunged to a new low of 163p when the London markets opened at 8am. Shortly after 9am they soared to 221p amid heavy trading, before subsiding to 180.9p by midday, a fall of 6.85% on the day.

Analysts said the volatility was fuelled by uncertainty over whether a takeover bid would soon be launched for Northern Rock.

It is understood that at least a dozen financial institutions have balked at the idea of rescuing the Newcastle-based bank.

Several hedge funds, including Cerberus, are reportedly considering buying Northern Rock, closing it to new business, and selling off its 100bn mortgage book to another bank. One financial firm, RAB Capital, bought 6.5% of the company last week.

Analysts have struggled to put a value on Northern Rock’s shares. JP Morgan calculated last week that they could be worth 250p each to a buyer. However, it cautioned this morning that it now believes the firm will be sold off for substantially less, adding to concern that shareholders may lose out in any sale. There are also fears that some of its 6,000 staff could be laid off.