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NEW DELHI : After winning a crucial trust vote in parliament on Tuesday, the India government is looking to push ahead with economic measures to rein in inflation.
The win paves the way for a nuclear energy deal with the United States, and buys the ruling government much needed time to fix the country's economic problems.
The worst is over for the ruling United Progressive Alliance (UPA) coalition.
Though his party holds a minority in the Parliament, Prime Minister Manmohan Singh can claim to have won the right to go ahead with the civilian nuclear agreement he signed with the US president in 2005.
C U Bhaskar, Nuclear Affairs Expert, said: "I think now that the domestic political situations are resolved, the government of India is going to move with some speed and some determination to ensure that the various formalities are met.
"We are all aware that the entire July 2005 agreement is based on a lot of inter-linkages. So there are some steps that have to be completed fairly quickly."
The Indian government now plans to move rapidly through the last few steps required before the deal is presented to the US Congress for approval.
It needs the green light from the International Atomic Energy Agency and the informal grouping of 45 countries comprising the Nuclear Supplier Group.
Mr Bhaskar said: "Now that the nuclear issue has become an area where there is a possibility of cooperation, one very contentious issue is removed and... it becomes an issue of cooperation. So that will automatically change the entire texture of India-US relations."
The US Congress will have to approve the deal to exempt India from laws that prohibit the transfer of atomic technology to countries which have not signed the nuclear Non-Proliferation Treaty.
The nuclear deal and the ensuing drama in parliament this past week was high on the prime minister's agenda, but what his party really wants is for him to focus his energies on curbing inflation which has crossed an annual rate of 11 per cent.
Now that the UPA government has shed the baggage of the communist parties, it could push through with reforms in the banking and insurance sectors that are mostly regulatory and can be decided at the cabinet level.
With just nine or 10 months to go before the general elections and several state elections looming in the coming months, the government will have to take some populist measures along with going ahead with the civilian nuclear agreement.
Interest rate hikes by the central bank and increased import of grain for public distribution may be some immediate steps. - CNA/ms
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