Nuclear deal strains India's government

"It's unsettling. If there is a stalemate, markets will react.

"If the agreement is held back, it will be a step in the wrong direction for the energy sector and overall foreign direct investment inflows.

"India will not be able to integrate with the global economy. Access of domestic companies to dual-use technologies will be denied.

"Given the present volatility in the market (due to U.S. subprime impact), the political uncertainty will amplify it."

PRAKASH SUBRAMANIAM, DIRECTOR AND HEAD OF REGIONAL MARKETS,

STANDARD CHARTERED BANK, INDIA:

"I don't think it is a cause of much worry. There may be some short-term impact in terms of sentiment, but broadly speaking the underlying fundamentals are so strong even the left parties would be loathe to disturb the applecart.

"I don't think it is going to become a lame-duck government as there is too much at stake. Global factors as in the U.S. subprime market will have much more sway over local markets."

D.K. JOSHI, PRINCIPAL ECONOMIST, RATING AGENCY CRISIL:

"Definitely, political uncertainty creates problems for economic performance. I don't think it will derail the strong economic performance, but that will delay reforms. Despite changes in government in the past few years, the Indian economy has continued to post strong growth.