At 42 years of age, Sunak is the youngest and the first person of colour to hold the post.

In his first address to the people after being named Prime Minister, Rishi Sunak said it was the "Greatest privilege of my life...Will work day in and out to deliver".

Sunak will take the oath of office on Oct 28.

Congratulating Rishi Sunak, Indian Prime Minister Narendra Modi tweeted, "I look forward to working closely together on global issues, and implementing Roadmap 2030. Special Diwali wishes to the 'living bridge' of UK Indians, as we transform our historic ties into a modern partnership".

Sunak had earlier too emerged as a key face to succeed former PM Boris Johnson in July when he resigned from the post.

However, failing to persuade Tory members, Sunak lost the opportunity and Truss became the new PM of the country in September.

Sunak's name reemerged after Truss resigned recently following a tumultuous and historically brief term marred by economic policies that roiled financial markets.

He is now set to become the new PM of the UK after Penny Mordaunt pulled her name out of the race to contest to lead the Conservative Party.

A large number of those who had previously supported Boris Johnson had switched their allegiance towards Sunak.

A political development occurred on Saturday as well when Johnson pulled himself out of the race to be Conservative Party leader.

Sunak, meanwhile, praised Boris Johnson's contribution during his tenure as the Prime Minister.

"Boris Johnson delivered Brexit and the great vaccine roll-out. He led our country through some of the toughest challenges we have ever faced, and then took on Putin and his barbaric war in Ukraine. We will always be grateful to him for that," Sunak tweeted.

"Although he has decided not to run for PM again, I truly hope he continues to contribute to public life at home and abroad," he said.

Sunak announced on Sunday he would be running for the leadership of the Conservative Party and the post of prime minister.

Liz Truss stepped down after her economic programme gave a hard jolt to the markets and left her Conservative Party divided, days after she was elected over Rishi Sunak.

Who is Rishi Sunak?

Born on May 12, 1980, Sunak served as Chancellor of the Exchequer from 2020 to 2022, having previously served as Chief Secretary to the Treasury from 2019 to 2020.

Born in Southampton to parents of Indian descent who migrated to Britain from East Africa in the 1960s, Sunak was educated at Winchester College.

He subsequently read philosophy, politics and economics (PPE) at Lincoln College, Oxford, and later gained an MBA from Stanford University in California as a Fulbright Scholar.

While studying at Stanford, he met his future wife Akshata Murty, the daughter of N. R. Narayana Murthy, the Indian billionaire businessman who founded Infosys.

Speaking about his parents and school, Sunak wrote on his official website: "My parents sacrificed a great deal so I could attend good schools. I was lucky to study at Winchester College, Oxford University and Stanford University. That experience changed my life and as a result I am passionate about ensuring everybody has access to a great education. I have been a school governor, a board member of a large youth club, and have always volunteered my time to education programmes that spread opportunity."

In his working career, Sunak had worked for Goldman Sachs and later as a partner at two hedge fund firms.