Indian stocks rallied on Wednesday, after the Congress Party-led government won a crucial vote of confidence in the lower house of Parliament.
The market is counting on the government, newly unencumbered by leftist coalition partners, bringing in a stream of reforms to the financial sector and pressing ahead with a nuclear-energy deal with the United States that should help relieve the country's energy shortage.
The Bombay Stock Exchange's Sensex Index soared on Wednesday, to close up 5.9%, at 14,942.28, after the government of Manmohan Singh won the vote late on Tuesday. The news also gave strength to the rupee, with a dollar falling to 42.1600 rupees late on Wednesday from 42.6076 rupees in late Tuesday trade in New York. In late New York trading WisdomTree India Earnings Fund (nyse: EPI - news - people ), an exchange-traded fund that invests in Indian shares, was up 4.1%, or 81 cents, to $20.76.
The vote came at the end of two days of heated debate and was marred by allegations of the bribery, but Congress and its allies won by a larger margin than had been expected, giving it a mandate to proceed with reforms advocated by the finance minister, Palaniappan Chidambaram. In December, Chidambaram promised to remove a cap that restricts foreign voting rights in a company to 10.0% and vowed to raise the limit for foreign direct investment in the insurance sector to 49.0% from 26.0%. However, owing to differences with Congress's Communist coalition partners at the time, there was little hope that the reforms would actually go through. Now the Communist parties are no longer part of the government, having withdrawn support and triggered the confidence vote.
"Now that the government has proven its majority it could press ahead with the reforms," said Kumar Nathani, fund manager of Taurus Mutual Fund in Mumbai.
Financials were the top performers on the stock exchanges Wednesday, with ICICI Bank (nyse: IBN - news - people ) closing up 11.6%. Engineering and energy stocks were also up, including power equipment maker Bharat Heavy Electricals, which ended the day up 10.9%, on hopes that the government will be able to press ahead with a nuclear energy deal struck with the United States, which the Communist parties had opposed.
Singh has contended that the nuclear-power deal is crucial if India wants to increase economic growth and reduce poverty, but for years had been unable to gain access to the Nuclear Suppliers Group, which controls the export of supplies for nuclear energy production because it hadn't signed up to the Nuclear Non-Proliferation Agreement. Now, India has reached an agreement with the United States, which would give it access to the group if it gets the go-ahead from the International Atomic Energy Agency and the approval of Congress.
While the nuclear deal is likely to go ahead, market observers noted that there were no guarantees that reforms would take place. According to Dharmakirti Joshi, chief economist at Crisil in Mumbai, the government's first priority is likely to be tackling double-digit inflation, in preparation for the general election that must be held by next April or May, at the latest. (See "No Sign Of Change In India" )
The Sensex has been underperforming European and the American markets, falling 26.9% since the start of the year, against the 15.2% drop in Britain's FTSE 100, as foreign investors pulled out more than $4.0 billion, draining liquidity from the market.. The unstable political environment had dashed hopes of any major reforms, including privatization and opening up the retail sector to foreign investors. Meanwhile, the Reserve Bank of India is expected to remain hawkish since inflation shows little sign of dampening.
Wednesday, July 23, 2008
Somnath: Once Marxist voice, now Speaker without a party
His was the stentorian voice that effectively projected the Communist Party of India-Marxist (CPM) view in Parliament - and outside - for four decades. On Wednesday, just two days before Somnath Chatterjee's 79th birthday that link snapped when one of India's most skilful parliamentarians and now Speaker of the lower House of Parliament was expelled from the party.
The often pugnacious and sometimes avuncular Chatterjee found himself ousted from the party he has been representing in the Lok Sabha, almost without a pause since 1971, a day after his commanding performance as its presiding officer.
On Monday, Chatterjee defied his party's diktat to continue in the Speaker's chair and preside over the two-day crucial trust vote that went against the CPM and was finally won by the United Progressive Alliance (UPA) government.
The CPM's swift move to sack him from the party the day after the vote was perhaps no surprise for the man, who had taken on the wrath of the leadership when he decided to stay on as Speaker even after the Left parties had withdrawn support to the UPA.
Just as his many decades as MP stood out for their forceful articulation of the Left viewpoint, his four years as Speaker have been remarkable. He has cajoled, rebuked and ranted - with many a one-liner thrown in - while taking on the job of steering the 545-member House.
Chatterjee may have often been criticised as a schoolmaster, but is acknowledged as one of India's more colourful and articulate speakers.
"Let them do what they want," a defiant Chatterjee told reporters shortly before the CPM announced his expulsion - marking his metamorphosis to a "rebel".
This "rebel", who gave up a promising career as a barrister, was not the homespun, grassroots comrade in the strict mould of a card holding member of the Communist party.
The son of Nirmal Chandra Chatterjee, who was president of the Akhil Bharatiya Hindu Mahasabha, a forerunner of the current day Bharatiya Janata Party, had signed up with the CPM relatively late in life -- when he was 39.
There was little looking back after that for the graduate from the Kolkata, Cambridge and Glasgow universities. Since 1971, he has lost an election only once - in 1984 by Mamata Banerjee in Jadavpur, West Bengal.
The 10-time MP then moved to Bolpur constituency in the state and never went back to Jadavpur.
The often pugnacious and sometimes avuncular Chatterjee found himself ousted from the party he has been representing in the Lok Sabha, almost without a pause since 1971, a day after his commanding performance as its presiding officer.
On Monday, Chatterjee defied his party's diktat to continue in the Speaker's chair and preside over the two-day crucial trust vote that went against the CPM and was finally won by the United Progressive Alliance (UPA) government.
The CPM's swift move to sack him from the party the day after the vote was perhaps no surprise for the man, who had taken on the wrath of the leadership when he decided to stay on as Speaker even after the Left parties had withdrawn support to the UPA.
Just as his many decades as MP stood out for their forceful articulation of the Left viewpoint, his four years as Speaker have been remarkable. He has cajoled, rebuked and ranted - with many a one-liner thrown in - while taking on the job of steering the 545-member House.
Chatterjee may have often been criticised as a schoolmaster, but is acknowledged as one of India's more colourful and articulate speakers.
"Let them do what they want," a defiant Chatterjee told reporters shortly before the CPM announced his expulsion - marking his metamorphosis to a "rebel".
This "rebel", who gave up a promising career as a barrister, was not the homespun, grassroots comrade in the strict mould of a card holding member of the Communist party.
The son of Nirmal Chandra Chatterjee, who was president of the Akhil Bharatiya Hindu Mahasabha, a forerunner of the current day Bharatiya Janata Party, had signed up with the CPM relatively late in life -- when he was 39.
There was little looking back after that for the graduate from the Kolkata, Cambridge and Glasgow universities. Since 1971, he has lost an election only once - in 1984 by Mamata Banerjee in Jadavpur, West Bengal.
The 10-time MP then moved to Bolpur constituency in the state and never went back to Jadavpur.
Its a vote for future of India: ASSOCHAM
ASSOCHAM had already predicted that the UPA government would successfully sail through the confidence motion, largely anticipating that a sanity will prevail among Members of Lok Sabha to caste their vote in favour of motion
Congratulating Prime Minister, Dr. Manmohan Singh for winning the confidence motion, Associated Chambers of Commerce & Industry of (ASSOCHAM) has described it a vote for the future of India and pragmatic policies pursued by the UPA for building a strong India.
ASSOCHAM President Sajjan Jindal says that the industry chamber had predicted that the UPA would successfully sail through the confidence motion. "This goes to prove that majority of people's representatives are all out to support the civil nuclear agreement with the US for meeting India’s energy needs," Jindal says.
The ASSOCHAM now expects that the UPA regime, with its new coalition partners, would vigorously pursue people friendly and industry friendly reforms in its remaining tenure of about 8-9 months.
Congratulating Prime Minister, Dr. Manmohan Singh for winning the confidence motion, Associated Chambers of Commerce & Industry of (ASSOCHAM) has described it a vote for the future of India and pragmatic policies pursued by the UPA for building a strong India.
ASSOCHAM President Sajjan Jindal says that the industry chamber had predicted that the UPA would successfully sail through the confidence motion. "This goes to prove that majority of people's representatives are all out to support the civil nuclear agreement with the US for meeting India’s energy needs," Jindal says.
The ASSOCHAM now expects that the UPA regime, with its new coalition partners, would vigorously pursue people friendly and industry friendly reforms in its remaining tenure of about 8-9 months.
Netizens appalled by trust vote drama
After a day-long cliffhanger of a trust vote in the Lok Sabha, the UPA government romped home. As the drama unfolded and excitement built up, Netizens poured in their view to NDTV.com on the twist and turns of the historic event. Most reflected on the realpolitik, which went on an open display in the House.
Yesterday's vote of confidence was a shame on Indian politicians, wrote Pankaj, adding that the MPs did not care about the image of India . They behaved like kids on the floor of the House. It is high time well-educated Indians joined politics.
Parashar Dave echoed similar views: Very few parties have the capability to put the interest of the country above the existence of their party as the government.
Dominant theme was the alleged note for vote scam. Syed forecasted: Now watch the corporate lobbyist minting the money from the congress government.
Even the Opposition came in for severe criticism. There are a handful of honest politicians in India. Opposition leaders talk about bringing inflation down on one hand and on the other hand they want people of India to face an unnecessary burden of elections, said Amrinder.
Yet another thread was about the Prime Minister s inability to address the House. I am so embarrassed by the way PM was not even allowed to speak. I believe people don t realise that he is our Prime Minister and deserves respect, wrote Neha.
Supporters of the PM and leader of the Opposition spoke out as well: I am extremely happy that our Prime Minister, Dr Manmohan Singh, has won the trust vote. He is an awesome person and I want to convey my congratulations to him, wrote Sunita Vijay. On the other hand, Rohit opined, we have not given enough thought to advani s remarks of unilateral partnership between india and usa .
Then there were the optimistic notes. Let us discuss the well-written speeches of the politicians and the future of the nuclear deal now, wrote pawan. We all know the sorry state of Indian politics. But, aren t all of us responsible (as well)? he added
Yesterday's vote of confidence was a shame on Indian politicians, wrote Pankaj, adding that the MPs did not care about the image of India . They behaved like kids on the floor of the House. It is high time well-educated Indians joined politics.
Parashar Dave echoed similar views: Very few parties have the capability to put the interest of the country above the existence of their party as the government.
Dominant theme was the alleged note for vote scam. Syed forecasted: Now watch the corporate lobbyist minting the money from the congress government.
Even the Opposition came in for severe criticism. There are a handful of honest politicians in India. Opposition leaders talk about bringing inflation down on one hand and on the other hand they want people of India to face an unnecessary burden of elections, said Amrinder.
Yet another thread was about the Prime Minister s inability to address the House. I am so embarrassed by the way PM was not even allowed to speak. I believe people don t realise that he is our Prime Minister and deserves respect, wrote Neha.
Supporters of the PM and leader of the Opposition spoke out as well: I am extremely happy that our Prime Minister, Dr Manmohan Singh, has won the trust vote. He is an awesome person and I want to convey my congratulations to him, wrote Sunita Vijay. On the other hand, Rohit opined, we have not given enough thought to advani s remarks of unilateral partnership between india and usa .
Then there were the optimistic notes. Let us discuss the well-written speeches of the politicians and the future of the nuclear deal now, wrote pawan. We all know the sorry state of Indian politics. But, aren t all of us responsible (as well)? he added
Tuesday, July 22, 2008
US NRI groups hail Manmohan government's trust vote win
Indian American community leaders Tuesday wholeheartedly welcomed the news of the Manmohan Singh government winning the parliamentary confidence motion, terming it as an endorsement for the India-US nuclear deal.
'It is a mandate of the people of India for the nuclear deal. Ordinary people want energy, electricity,' Surinder Malhotra, president of the Indian National Overseas Congress, told IANS. The executive committee of the Overseas Congress was meeting later Tuesday evening to celebrate the Congress-led United Progressive Alliance government's victory in the trial of strength, he added.
It is a welcome news for the Indian Americans, said Thomas Abraham, chairman of the Global Organisation of People of Indian Origin (Gopio) International, because the community had worked hard to change the minds of many US lawmakers to vote for the nuclear deal and would have been disappointed if the government had fallen.
He added: 'India not only needs more energy, the nuclear deal will also pave way for advanced countries to bring cutting edge technology into India, which it badly needs to be able to step ahead of rival China.'
Abraham felt that the go-ahead on the deal will also show to the world that India follows through its agreements and deals with others.
Yash Pal Soi, president of the Federation of Indian Associations (Tristate), said, 'With stability of the Indian government, progress in the country will continue.'
Sanku Rao, new president of the Association of American Physicians of Indian Origin (AAPI), said, 'It is good that Manmohan Singh continues as prime minister. He as finance minister laid down the financial structure that we have in India now, and he is a man of integrity. Also, now, hopefully, the nuclear deal, for which we worked hard, will not get delayed any further - it is a top priority to move with for India.'
Business leaders from the community also welcomed the development in India.
Tejinder Pal Singh Bindra, senior vice-president of the Jeetish group of companies in New York, who is also prominent in Sikh affairs, said: 'It is good that the Manmohan Singh government took a stand and succeeded. It will send a message that others cannot hijack its agenda.'
He added, 'It is good for business. Now more business and investment can flow into India. As an Indian and a Sikh, I welcome the news
'It is a mandate of the people of India for the nuclear deal. Ordinary people want energy, electricity,' Surinder Malhotra, president of the Indian National Overseas Congress, told IANS. The executive committee of the Overseas Congress was meeting later Tuesday evening to celebrate the Congress-led United Progressive Alliance government's victory in the trial of strength, he added.
It is a welcome news for the Indian Americans, said Thomas Abraham, chairman of the Global Organisation of People of Indian Origin (Gopio) International, because the community had worked hard to change the minds of many US lawmakers to vote for the nuclear deal and would have been disappointed if the government had fallen.
He added: 'India not only needs more energy, the nuclear deal will also pave way for advanced countries to bring cutting edge technology into India, which it badly needs to be able to step ahead of rival China.'
Abraham felt that the go-ahead on the deal will also show to the world that India follows through its agreements and deals with others.
Yash Pal Soi, president of the Federation of Indian Associations (Tristate), said, 'With stability of the Indian government, progress in the country will continue.'
Sanku Rao, new president of the Association of American Physicians of Indian Origin (AAPI), said, 'It is good that Manmohan Singh continues as prime minister. He as finance minister laid down the financial structure that we have in India now, and he is a man of integrity. Also, now, hopefully, the nuclear deal, for which we worked hard, will not get delayed any further - it is a top priority to move with for India.'
Business leaders from the community also welcomed the development in India.
Tejinder Pal Singh Bindra, senior vice-president of the Jeetish group of companies in New York, who is also prominent in Sikh affairs, said: 'It is good that the Manmohan Singh government took a stand and succeeded. It will send a message that others cannot hijack its agenda.'
He added, 'It is good for business. Now more business and investment can flow into India. As an Indian and a Sikh, I welcome the news
US-India chamber to support next steps in securing n-deal
The US-India Business Council (USIBC) has pledged to energise its US Chamber-sponsored 'Coalition for Partnership with India' following Indian parliament's vote of confidence in favour of the next steps in securing the civilian nuclear deal with the US.
Referring to the news from India, USIBC president Ron Somers said, 'This marks a historic victory for India and for the globe. India's responsible record in developing its existing civilian nuclear power programme will bring much-needed talent and innovation to the 'nuclear renaissance' underway, necessary to stem global warming.'
USIBC had spearheaded legislation in 2006 to change the US Atomic Energy Act of 1954, enabling civilian nuclear cooperation with India.
The next step in the India-US nuclear deal is to reach a safeguards agreement with the International Atomic Energy Agency (IAEA) on India's atomic power plants, setting the stage for consideration by the 45-nation Nuclear Suppliers Group (NSG) to waive conditions relative to New Delhi.
That will enable civilian nuclear trade in technology and fuel by the Group member countries ending the 35-year technology denial regime that has been imposed against India.
The US, Britain, France, Russia, Japan, China, and most recently Australia - all key members of the NSG - have already voiced their support for ending the embargo against civilian nuclear trade with India, a USIBC press release said.
After NSG makes its rule changes, the US Congress must ratify the so-called 123 Agreement between the US and India, which will open the way for US companies to participate in civilian nuclear cooperation with India.
'US companies look forward to cooperating with Indian companies to achieve this important energy security infrastructure build-out,' Somers said.
He conceded that 'time is tight' because of the busy US Congressional calendar till the presidential election in November, but added: 'We are encouraged by recent statements made by Senate Foreign Relations Committee chairman Senator Joe Biden, who says he will find time to press for ratification of the 123 Agreement so long as India is able to complete its steps.
'USIBC and the Coalition for Partnership with India will be front and centre in this debate to ensure US Congressional passage,' Somers added.
The USIBC, formed in 1975 under the aegis of the US Chamber of Commerce, is the premier business advocacy organisation representing 280 of the largest US companies investing in India, joined by two dozen of India's largest global companies. It is mandated to deepen US-India commercial ties.
Coalition for Partnership with India comprises American businesses, academic institutions, associations, think tanks, and like-minded individuals supporting a deeper strategic partnership with India
Referring to the news from India, USIBC president Ron Somers said, 'This marks a historic victory for India and for the globe. India's responsible record in developing its existing civilian nuclear power programme will bring much-needed talent and innovation to the 'nuclear renaissance' underway, necessary to stem global warming.'
USIBC had spearheaded legislation in 2006 to change the US Atomic Energy Act of 1954, enabling civilian nuclear cooperation with India.
The next step in the India-US nuclear deal is to reach a safeguards agreement with the International Atomic Energy Agency (IAEA) on India's atomic power plants, setting the stage for consideration by the 45-nation Nuclear Suppliers Group (NSG) to waive conditions relative to New Delhi.
That will enable civilian nuclear trade in technology and fuel by the Group member countries ending the 35-year technology denial regime that has been imposed against India.
The US, Britain, France, Russia, Japan, China, and most recently Australia - all key members of the NSG - have already voiced their support for ending the embargo against civilian nuclear trade with India, a USIBC press release said.
After NSG makes its rule changes, the US Congress must ratify the so-called 123 Agreement between the US and India, which will open the way for US companies to participate in civilian nuclear cooperation with India.
'US companies look forward to cooperating with Indian companies to achieve this important energy security infrastructure build-out,' Somers said.
He conceded that 'time is tight' because of the busy US Congressional calendar till the presidential election in November, but added: 'We are encouraged by recent statements made by Senate Foreign Relations Committee chairman Senator Joe Biden, who says he will find time to press for ratification of the 123 Agreement so long as India is able to complete its steps.
'USIBC and the Coalition for Partnership with India will be front and centre in this debate to ensure US Congressional passage,' Somers added.
The USIBC, formed in 1975 under the aegis of the US Chamber of Commerce, is the premier business advocacy organisation representing 280 of the largest US companies investing in India, joined by two dozen of India's largest global companies. It is mandated to deepen US-India commercial ties.
Coalition for Partnership with India comprises American businesses, academic institutions, associations, think tanks, and like-minded individuals supporting a deeper strategic partnership with India
Indian government survives vote
Congress supporters were jubilant after the vote
India's Congress party-led government has survived a vote of confidence over a civilian nuclear deal with the US.
The government motion received 275 votes with 256 against, Speaker Somnath Chatterjee said, hours after adjourning the debate amid claims of vote buying.
The vote came after the government's left-wing allies withdrew their support in protest at the controversial accord.
If the government had lost the vote, India would have faced early elections, casting the nuclear deal in doubt.
The lower house was packed to capacity, with MPs summoned from their sick beds and even from prison cells to take part in the vote.
After it was held there was brief confusion over the counting process. Most voting was electronic, but about 50 votes were cast on paper which delayed the result.
At least four MPs were too ill to vote from the chamber of the 543-seat house itself, but it is still not clear why so many MPs cast paper ballots.
A number of MPs also abstained.
TIMETABLE FOR NUCLEAR ACCORD
Approval needed from IAEA, expected to meet on 1 August
Consent also required from 45-member Nuclear Suppliers Group
Congress to approve deal before President Bush signs it into law
All this to happen before Mr Bush's tenure expires on 19 January 2009
Q&A: India confidence vote
There were Congress celebrations when victory became clear, with dancing supporters cheering, clapping and letting off firecrackers in front of party leader Sonia Gandhi's house in Delhi.
Prime Minister Manmohan Singh thanked MPs for "such a convincing victory".
"This will send a message to the world at large... India is prepared to take its rightful place in the comity of nations," he told reporters.
The BBC's Sanjoy Majumder in Delhi says the vote had looked too close to call.
But the government managed to scrape through with the support of smaller parties and independent members.
India faces a general election next year and many political parties have used the debate over the nuclear deal to stake out their positions ahead of the polls, our correspondent says.
Tight vote
Two days of debate on the nuclear accord ended in uproar amid opposition allegations of vote buying.
Opposition Bharatiya Janata Party (BJP) members waved fistfuls of money in the air, alleging that they had been offered bribes to abstain.
Advertisement
Opposition MPs wave 30 million rupees allegedly paid to buy their votes
Mr Chatterjee adjourned proceedings for several hours. He called it a "very sad day" for the Indian parliament, adding: "Nobody will be spared if found guilty."
The prime minister has promised his party will co-operate in an inquiry into the claims.
With the left withdrawing support, the government could rely on only 226 members in the 543-seat parliament, and needed 46 more to be absolutely sure of a majority.
India's media was awash with reports of alleged defections and desertions among MPs ahead of the vote.
Under the accord, India, which has not signed the nuclear Non-Proliferation Treaty, would gain access to US civilian nuclear technology and fuel.
Mr Singh called the victory "impressive"
In return its civilian nuclear facilities would be opened to inspection. Nuclear weapons sites would remain off-limits.
The communists fear the accord could give the US too much influence over Indian foreign and nuclear policy.
The main opposition Hindu nationalist BJP fears that the deal could compromise India's ability to test nuclear weapons in the future.
India is under pressure from Washington to sign the accord before the US presidential election in November.
Last week, Indian officials met members of the International Atomic Energy Agency (IAEA), the world nuclear regulatory body, in Vienna to discuss plans to safeguard India's civilian nuclear facilities.
The IAEA's approval of the plan is a key condition for enacting the deal.
HAVE YOUR SAY Whether the government stays in power or not, it has lost the credibility and confidence of people at large
Rakesh Punia, Delhi
Send us your commentsIf the IAEA signs the agreement, the deal will go to the 45-nation Nuclear Suppliers Group, which regulates global civilian nuclear trade, for approval.
It must then be approved by the US Congress before President Bush can sign it into law.
Critics of the deal fear assistance to India's civil programme could free-up additional radioactive material for bomb-making purposes.
India's Congress party-led government has survived a vote of confidence over a civilian nuclear deal with the US.
The government motion received 275 votes with 256 against, Speaker Somnath Chatterjee said, hours after adjourning the debate amid claims of vote buying.
The vote came after the government's left-wing allies withdrew their support in protest at the controversial accord.
If the government had lost the vote, India would have faced early elections, casting the nuclear deal in doubt.
The lower house was packed to capacity, with MPs summoned from their sick beds and even from prison cells to take part in the vote.
After it was held there was brief confusion over the counting process. Most voting was electronic, but about 50 votes were cast on paper which delayed the result.
At least four MPs were too ill to vote from the chamber of the 543-seat house itself, but it is still not clear why so many MPs cast paper ballots.
A number of MPs also abstained.
TIMETABLE FOR NUCLEAR ACCORD
Approval needed from IAEA, expected to meet on 1 August
Consent also required from 45-member Nuclear Suppliers Group
Congress to approve deal before President Bush signs it into law
All this to happen before Mr Bush's tenure expires on 19 January 2009
Q&A: India confidence vote
There were Congress celebrations when victory became clear, with dancing supporters cheering, clapping and letting off firecrackers in front of party leader Sonia Gandhi's house in Delhi.
Prime Minister Manmohan Singh thanked MPs for "such a convincing victory".
"This will send a message to the world at large... India is prepared to take its rightful place in the comity of nations," he told reporters.
The BBC's Sanjoy Majumder in Delhi says the vote had looked too close to call.
But the government managed to scrape through with the support of smaller parties and independent members.
India faces a general election next year and many political parties have used the debate over the nuclear deal to stake out their positions ahead of the polls, our correspondent says.
Tight vote
Two days of debate on the nuclear accord ended in uproar amid opposition allegations of vote buying.
Opposition Bharatiya Janata Party (BJP) members waved fistfuls of money in the air, alleging that they had been offered bribes to abstain.
Advertisement
Opposition MPs wave 30 million rupees allegedly paid to buy their votes
Mr Chatterjee adjourned proceedings for several hours. He called it a "very sad day" for the Indian parliament, adding: "Nobody will be spared if found guilty."
The prime minister has promised his party will co-operate in an inquiry into the claims.
With the left withdrawing support, the government could rely on only 226 members in the 543-seat parliament, and needed 46 more to be absolutely sure of a majority.
India's media was awash with reports of alleged defections and desertions among MPs ahead of the vote.
Under the accord, India, which has not signed the nuclear Non-Proliferation Treaty, would gain access to US civilian nuclear technology and fuel.
Mr Singh called the victory "impressive"
In return its civilian nuclear facilities would be opened to inspection. Nuclear weapons sites would remain off-limits.
The communists fear the accord could give the US too much influence over Indian foreign and nuclear policy.
The main opposition Hindu nationalist BJP fears that the deal could compromise India's ability to test nuclear weapons in the future.
India is under pressure from Washington to sign the accord before the US presidential election in November.
Last week, Indian officials met members of the International Atomic Energy Agency (IAEA), the world nuclear regulatory body, in Vienna to discuss plans to safeguard India's civilian nuclear facilities.
The IAEA's approval of the plan is a key condition for enacting the deal.
HAVE YOUR SAY Whether the government stays in power or not, it has lost the credibility and confidence of people at large
Rakesh Punia, Delhi
Send us your commentsIf the IAEA signs the agreement, the deal will go to the 45-nation Nuclear Suppliers Group, which regulates global civilian nuclear trade, for approval.
It must then be approved by the US Congress before President Bush can sign it into law.
Critics of the deal fear assistance to India's civil programme could free-up additional radioactive material for bomb-making purposes.
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