The Congress-led government unwisely sacrificed the timely operationalisation of the innovative nuclear deal for which it worked hard for over three years. History would have remembered the government for forging a strong strategic relationship with the US, of which the nuclear deal is the symbol of trust. Instead, it lost its credibility to the world, as well as transformed itself into a lame duck government for an additional year, subject to the irrational pressures of its anti-development Left partners. I don?t see any reason behind this madness.

The Congress, until recently, took a very courageous, correct and unwavering stance on the deal. On October 7, Sonia Gandhi summed it up brilliantly in Haryana by emphasising that opponents of the deal are ?enemies of peace and development?. The Prime Minister had earlier made it clear that the government fought hard for the deal, and would stand or fall by it. However, within days, the same leaders switched positions and yielded to pressures of their Left partners. They have shown no hesitation in risking the freeze of all policy reforms. It is heartening to know that the UPA took a stand at the October 22 meeting that the deal is not yet off.

Apart from the nuclear deal, which is a part of the grand strategic alliance with the US, the UPA government has so far been associated with lacklustre economic reforms. Its macroeconomic policy is a continuation of previous policies. The convertibility of the rupee, flexible labour laws, reduction of massive transaction costs, and de-reservation of the small-scale industry are still elusive.

The real contribution of the Congress-led government is the strategic partnership with the US. The nuclear deal is a litmus test of this long-lasting partnership between two nations who did not fully trust each other up until now. This could have been the jewel in the crown of the UPA government. This could have cemented strong ties in trade, investment, technology transfer, and defence cooperation for which Indian industry has worked hard over the last decade.

The benefit of energy security by integrating with the global nuclear energy group is just the tip of the iceberg. India would also be in a position to make a quantum jump in its export of goods, services, investment, and tap greater financial flows and intellectual inputs from its own very wealthy and well-placed diaspora. The 123 Agreement has triggered an unsurpassed enthusiasm to bolster an economic partnership between the two largest democracies that could change the global dynamics in the 21st century. Stalling the deal is a major setback to development, and creates great uncertainty in light of the election frenzy that will soon grip the US. Irrespective of Bush?s record in Iraq, he has been the friendliest US president to India. It is wise to sign the deal during his tenure.

It defies all logic that the government is stalling its only major reform initiative at its last stage. Opposition from the Left is just a blatant reflection of its ant-American stance. So far it has not come out with a solid argument against the deal. Yielding to the Left will risk abandoning all policy reforms in the pipeline. The country cannot afford that. As a mere supporter of the government, the Left has prevented from opening up retail, education and the small & medium sector to external competition. It has put on hold all privatisation initiatives. One shudders to imagine what damage a strong Left partner would do now to make the government totally impotent.

The Congress should just switch once more and go ahead with deal by calling the Left?s bluff. At worst, there will be a mid-term poll. Even if the Congress does not form the next government, development will stay on track and it will ensure that no party will form an alliance with the Left. Apart from professing secularism, the Left has very little to offer to the nation.

?The writer is a principal advisor, CII. These are his personal views