06-26-2008, 09:01 PM
ANALYSIS-India may see snap poll after nuclear deal end game
Thu Jun 26, 2008 9:26am BST
By Alistair Scrutton
NEW DELHI, June 26 (Reuters) -<b> After more than four years of alliance, the Indian government and its communist allies appear closer than ever to a split over a civilian nuclear deal with the United States, which could spark early general elections.
If the split happens -- and many think it is a matter of weeks -- the government will quickly need to find another party to provide it with a parliamentary majority, or face the risk of early elections before scheduled May, 2009 polls.</b>
It is possible India will soon enter months of political uncertainty and electioneering, putting in jeopardy the chances of tough and decisive measures from the government to deal with record inflation, rising rates and signs of a slowing economy.
After years of communists blocking market reforms from financial sector liberalisation to privatisation, Prime Minister Manmohan Singh may have put his foot down over the nuclear deal, determined to leave office with some sort of legacy.
Frustrated from months of delays, Singh knows time is running out for the deal to be approved before President George W. Bush leaves office.
Singh sees the deal giving India access to U.S. nuclear fuel and technology and allowing closer trade and diplomatic ties with Washington. Communists see India becoming a pawn of Washington and have threatened to withdraw support if the pact goes ahead.
"The division between the government and the communists is wider than ever and unlikely to be bridged," said Pran Chopra, a political analyst.
The pessimism follows Wednesday's meeting between the two sides. Party leaders left grim-faced after fruitless talks.
Thu Jun 26, 2008 9:26am BST
By Alistair Scrutton
NEW DELHI, June 26 (Reuters) -<b> After more than four years of alliance, the Indian government and its communist allies appear closer than ever to a split over a civilian nuclear deal with the United States, which could spark early general elections.
If the split happens -- and many think it is a matter of weeks -- the government will quickly need to find another party to provide it with a parliamentary majority, or face the risk of early elections before scheduled May, 2009 polls.</b>
It is possible India will soon enter months of political uncertainty and electioneering, putting in jeopardy the chances of tough and decisive measures from the government to deal with record inflation, rising rates and signs of a slowing economy.
After years of communists blocking market reforms from financial sector liberalisation to privatisation, Prime Minister Manmohan Singh may have put his foot down over the nuclear deal, determined to leave office with some sort of legacy.
Frustrated from months of delays, Singh knows time is running out for the deal to be approved before President George W. Bush leaves office.
Singh sees the deal giving India access to U.S. nuclear fuel and technology and allowing closer trade and diplomatic ties with Washington. Communists see India becoming a pawn of Washington and have threatened to withdraw support if the pact goes ahead.
"The division between the government and the communists is wider than ever and unlikely to be bridged," said Pran Chopra, a political analyst.
The pessimism follows Wednesday's meeting between the two sides. Party leaders left grim-faced after fruitless talks.