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Nuclear deal strains India's government



20 August 2007 @ 12:34 pm ET

MUMBAI - Indian Prime Minister Manmohan Singh's government is struggling to weather a crisis as communist allies threaten to end support over a nuclear energy deal with the United States.

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The four communist parties have 60 lawmakers in the lower house of parliament, and while they are not part of the ruling coalition they shore it up from outside.

But they told Singh and the leader of the ruling Congress party, Sonia Gandhi, at the weekend that they should not proceed further with the nuclear agreement and warned of "serious consequences" if they did.

KEY POINTS

* The nuclear deal aims to end American sanctions on nuclear trade with India and give it access to nuclear fuel and equipment to help meet its soaring energy needs.

* Critics say it will hurt India's nuclear security because of U.S. laws on nuclear trade governing the pact.

* The communists have been critical of the government's growing friendship with Washington, and say the deal will damage India's sovereignty, placing it in the U.S.'s strategic embrace.

* They have urged the government not to pursue further negotiations for an inspection regime for its civil nuclear facilities, or seek approval from the 45-nation Nuclear Suppliers Group.

COMMENTARY:

ABHEEK BARUA, CHIEF ECONOMIST, HDFC BANK, NEW DELHI:

Copyright 2008 Reuters. All rights reserved.

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