Vital political and economic reforms, stalled for years because of trenchant communist opposition, were back on the agenda in India yesterday after angry leftist leaders formally withdrew from the ruling coalition. The immediate cause of the historic split between the Government and its longtime communist allies is Prime Minister Manmohan Singh's determination to press ahead with the civilian nuclear deal with the Bush administration. US president George W. Bush yesterday met Dr Singh on the sidelines of the G8 summit in Japan to discuss the pact, which would reverse three decades of US policy by allowing the sale of nuclear fuel and technology to India. In return, India would open its civilian reactors to international inspections. India has not signed international non-proliferation accords but has tested nuclear weapons.

India's Congress-led coalition is swapping out its Communist partners and swapping in the Socialists. That's all you need to know about the ever-dimming prospects for serious, nationwide economic reform. The US-India civil nuclear deal provided the spark for the reshuffle. The Communists, led by Prakash Karat, have long opposed the deal on the grounds that it would bring India closer to America. They've been threatening to pull out of the Congress coalition for months. On Tuesday, they actually did it. But Congress was saved by converging interests. The "Samajwadi" (literally, Socialist) Party was looking for a strong partner to help it win more seats in coming general elections. And Congress was looking for a quick replacement for the Communists, to avoid losing a majority in Parliament.

One of the most notable events of the G-8 meeting in Tokyo this week had little to do with economic growth. In a conversation yesterday, US President George Bush and Indian Prime Minister Manmohan Singh discussed a civilian nuclear deal that has been in the works for nearly three years. The pact, known as the 123 Agreement under US law, would allow American firms to invest and trade in civil nuclear technologies with India -- a significant event if it occurs, given that India hasn't signed the Nuclear Nonproliferation Treaty (NPT) and has not allowed full inspections of its nuclear plants. With only months left before Congress breaks for the US Presidential elections, the time needed to finalize the deal this year may be running out.