India

India left-wing to reconsider support for government

Article published on the 2008-07-01 Latest update 2008-07-02 09:28 TU

A bloc of left-wing and communist parties who support India's government are set to meet this week to decide whether or not to pull out of the coalition. The bloc is opposed to a nuclear energy deal.

However, the four-party bloc argues the nuclear deal would draw the traditionally non-aligned country too close to Washington.

"We will be meeting on Friday to discuss our future strategy, including the issue of support," a senior Communist leader said.

The likelihood of early elections toward the end of the year rather than May 2009 has been seen as increasingly likely after a crisis meeting last week.

Since then Singh has appeared determined to press ahead with implementing the deal and on Sunday Congress leader Sonia Gandhi urged the party to prepare for elections.

The left is now reportedly watching to see if Singh will attend the Group of Eight rich nations summit in Japan next week and meet US President George Bush, which they would regard as a sign he will go ahead with the deal.

Correspondent Vikram Roy in New Delhi said that no party in India wants to have elections before the scheduled date.

"No party in India is ready for elections with inflation galloping ahead now at eleven-plus and promising to touch 13 per cent, the stock market falling until its lowest level since April 2007," he said.

The nuclear deal, which has been agreed in principle in 2005, would allow India to buy atomic power plants and technology despite not signing international non-proliferation pacts.

New Delhi still needs to negotiate an agreement with the International Atomic Energy Agency to allow inspections of its atomic plants and garner a waiver from the 45-nation Nuclear Suppliers Group before it can enter the global nuclear trade.