Nuclear nations approve disputed India trade waiver

By Mark Heinrich

VIENNA (Reuters) - Forty-five nations approved a U.S. proposal on Saturday to lift a global ban on nuclear trade with India in a breakthrough towards sealing a controversial U.S.-Indian atomic energy deal.

One hurdle remained before the U.S.-India deal can take force -- ratification by the U.S. Congress. It must act before adjourning in late September for elections or the deal could be left to an uncertain fate under a new U.S. administration.

The U.S.-India deal raised international misgivings since India has shunned the Non-Proliferation Treaty (NPT) meant to stop the spread and production of nuclear weapons and mandate gradual disarmament, and a companion test ban pact.

Washington says the fuel and technology deal would forge a strategic partnership with the world's largest democracy, help India meet rising energy demand in an environmentally sound way and open a nuclear market worth billions of dollars.

Nuclear Suppliers Group nations adopted a one-off waiver allowing them to do business with India after several small NSG states agreed under heavy U.S. pressure to weaker language than they had sought to ensure India does not test atom bombs again.

After two weeks of meetings and long-distance consultations, resistance to the exemption finally crumbled when six holdout states accepted revisions to the text saying it was based on a confidence-building Indian declaration on Friday.

Critically, the foreign ministry declaration reinforced a 10-year-old commitment to a voluntary test moratorium.

It also said India -- whose regional rival Pakistan also has nuclear firepower outside the NPT -- would not join any future nuclear arms race, would permit broader U.N. inspections and adhered to the NSG anti-proliferation export control regime.