Question
When and how does the President exercise his discretion?  

Answer

When a party or coalition of parties gets a clear majority in the elections, the President has to appoint the leader of the majority party or the coalition that enjoys majority support in the Lok Sabha. When no party or coalition gets a majorty in the Lok Sabha, the President exercises his discretion. The President appoints a leader who in his opinion can muster majority support in the Lok Sabha. In such a case, the President can ask the newly appointed leader to prove majority support in the Lok Sabha within a specified time.

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