The 42-year-old Gandhi, whose father, grandmother and great-father all served as prime ministers, had decided to remain in his post as a secretary general of the main ruling Congress party, Singh said as he unveiled a cabinet reshuffle.
"I wanted Rahul Gandhi in government, but he wants to strengthen the party," Singh told reporters after a ceremony at the presidential palace for the swearing-in of seven new cabinet ministers.
Gandhi has been under sustained pressure from party loyalists to take a higher public profile, including from his mother Sonia who is the head of Congress.
But his reputation suffered a setback in March when he headed Congress`s dismal campaign in elections for the northern state of Uttar Pradesh.
Singh has asked Rahul Gandhi to join his cabinet on several occasions since his re-election in 2009. (M014)
Editor: Kunto Wibisono
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