THE Indian Government has shrugged off a dramatic bribery scandal, winning a crucial no-confidence vote in parliament and opening the way for a landmark nuclear pact with the United States.
The result has prompted renewed calls for the Australian Government to lift its ban on uranium sales to India.
The vote endorsed the "123 Agreement" with the US, which will give India nuclear technology and fuel despite its refusal to sign the nuclear non-proliferation treaty.
It was a triumph for the Prime Minister, Manmohan Singh, and for Sonia Gandhi, the president of the Congress party, which leads India's governing coalition.
"This will send a message to the world at large … India is prepared to take its rightful place in the community of nations," Dr Singh said.
The Government won a simple majority, with 275 votes in the 541-seat parliament. There were 10 abstentions.
However, the win was marred by allegations of bribery shortly before the vote.
The parliament descended into chaos when three members of the main opposition party, the BJP, tabled a black bag containing 10 million rupees ($239,500) and then waved wads of cash in front of the Speaker.
The trio claimed the money was the down payment on a 90 million-rupee bribe for them to assist the Government by abstaining from the vote. Government supporters denied the accusation and branded it a "stunt".
The Speaker of the parliament, Somnath Chatterjee, has promised an investigation but political analysts said the bribery drama, witnessed by millions of voters watching on TV, could damage the Government.
Pratap Bhanu Mehta, the president of the Centre for Policy Research, wrote in The Indian Express that the incident showed parliamentary democracy in India was in "in deep disarray".
The vote became necessary after left-wing allies of the Government withdrew support, over the decision to press ahead with the nuclear deal with the US.
The board of the UN's International Atomic Energy Agency and the 45-member Nuclear Suppliers Group must now endorse the agreement before its goes to the US Congress for final approval.
The Australian Government, a member of the suppliers group, does not allow the export of uranium to India because India is not a signatory to the non-proliferation treaty. However, Australia is not expected to obstruct international approval of the deal.
The Opposition foreign affairs spokesman, Andrew Robb, said Labor should lift its uranium export ban.
"Mr Rudd must now correct the snub to India by reversing his earlier decision to abandon uranium sales for clean electricity generation," he said. "The US-India nuclear agreement is good for India, good for Australia, good for the region, good for climate change and good for nuclear non-proliferation."