Nuclear deal bolsters India, but no kowtowing to West

By Alistair Scrutton

NEW DELHI (Reuters) - The approval of a landmark U.S. civil nuclear deal will bolster India's strategic clout and challenge China, but those hoping for a new Western ally to tilt the balance of power in Asia may be disappointed.

The deal, effectively sealed by U.S. Congress on Wednesday, was always more about geopolitical strategy than business ties.

For supporters in Washington it brings India into the Western fold, cementing India's strategic move from its pro-Soviet tilt during the Cold War towards the West just as its booming economy also embraces markets, mortgages and malls.

"The U.S. deal is not an end in itself," said C. Raja Mohan, a Singapore-based security expert. "It's a means to an end, helping clear the way for India and the West to work together.

"The United States saw that India's economic clout will inevitably translate into strategic power. And the U.S. acted.

"Before the deal, India was not part of the international calculus in Asia. Now it is."

Business will benefit, especially U.S., France and Russian firms eager for a nuclear power market that could attract an estimated $27 billion in investments over the next 15 years.

The argument goes that the deal will have a ripple effect, allowing closer military ties with the West and leading New Delhi to act in U.S. and European interests as the world's largest democracy and now a de facto nuclear power.