India-US nuclear deal

India and the United States sealed a landmark civilian nuclear cooperation pact yesterday, the centrepiece of President George W. Bush's first visit to the world's largest democracy.

The pact marks a major breakthrough for New Delhi, long treated as a nuclear pariah by the world, as it allows it to access American atomic technology and fuel to meet its soaring energy needs - provided the US Congress gives its approval.

It is also expected to allow atomic trade between India and other nuclear powers if the Nuclear Suppliers Group, an informal group of nations that controls global nuclear transactions, follows suit by lifting curbs on New Delhi.

"We have concluded an historic agreement today on nuclear power," Mr Bush told a joint news conference with Indian Prime Minister Manmohan Singh after their summit talks.

"I am looking forward to working with our United States Congress to change decades of law that will enable us to move forward in this important initiative," he said.

"What this agreement says is things change, times change... this agreement is in our interest and therefore I am confident we can sell this to our Congress."

Mr Singh said he was particularly pleased that the two countries had been able to clinch the deal. "Our discussions today make me confident that there is no limits to Indo-US partnerships." While the leaders celebrated the deal in the capital, protesters were on the streets demonising Mr Bush.

His visit has inflamed passions among communist and Muslim groups opposed to American policies such as the invasion of Iraq.

In the capital, thousands of communists and socialist party activists marched through the heart of the city, many wearing red caps and waving red flags.

"Beat up Bush with slippers" some activists shouted while others held placards that said "Imperialist, Barbarian Bush Go Back" and "Alert, Deadly Bushfire has arrived in India".

The UN nuclear watchdog welcomed the pact and said it would end New Delhi's nuclear isolation and spur global non-proliferation efforts.

"It would be a milestone, timely for ongoing efforts to consolidate the non-proliferation regime, combat nuclear terrorism and strengthen nuclear safety," said Mohammed ElBaradei, International Atomic Energy Authority chief.

British Prime Minister Tony Blair echoed Mr ElBaradei. "I believe that the deal can make a significant contribution to energy security, development, economic and environmental objectives for India and the international community as well as representing a net gain for the non-proliferation regime," he said.