UPDATE 1-India says relations with U.S. in good shape

TOYAKO, Japan, July 9 (Reuters) - Indian Prime Minister Manmohan Singh, who faces political turmoil at home over a civilian nuclear deal with the United States, said on Wednesday that ties with Washington have never been as good as now.

After meeting President George W. Bush on the sidelines of the G8 summit, Singh said Delhi and Washington must stand "shoulder to shoulder" on issues such as climate change and managing the global economy.

"I am very pleased with the state of our relationship, which has truly acquired the characteristic of a genuine strategic partnership," Singh said to reporters after meeting Bush.

India's communist parties on Tuesday withdrew support for Singh's government and said they would call for a vote of no confidence to protest the nuclear deal with the United States, which they say makes India subservient to Washington.

Bush said the two discussed the nuclear deal, but he gave no further details. They also talked about the environment, free trade, and education, he said.

"All-in-all it was a really good meeting among two friends," Bush said.

Singh added that the two nations had made progress in nuclear, space, defense and education cooperation in recent years.

"Our relationship with the United States has never been in such good shape as it is today," he said. (Reporting by Tabassum Zakaria; Editing by Hugh Lawson)