WASHINGTON, Dec 18: President George Bush signed the landmark US-India nuclear deal into law on Monday and declared that India and the United States were natural partners.The act allows nuclear commerce between Washington and New Delhi after 30 years, amending the laws that forbade such trade.

“The relationship between the United States and India has never been more vital,” said President Bush. “The bill I’m about to sign is evidence of the growing bonds of trust between our two countries.”

The law includes an exemption that allows Washington to engage in civilian nuclear trade with Delhi. India will provide safeguards and inspections at its 14 civilian nuclear plants. But the treaty forbids such inspections at eight of India’s military plants.

Critics contend the measure will spark a nuclear arms race in Asia, especially since India has refused to sign the Nuclear Non-proliferation Treaty.

But at the White House signing ceremony, Mr Bush called the deal an `important achievement for the whole world’.

In a short speech, Mr Bush declared that `the United States and India are natural partners, the rivalries that once kept our nations apart are no more’.

Mr Bush also praised Secretary of State Condoleezza Rice, who spearheaded the initiative on the deal.

“India is a democracy that protects the rule of law and is accountable to its people. India is an open society that demands freedom of speech and freedom of religion,” said Mr Bush while explaining why India was a natural ally.

“India is an important ally in the war against extremists and radicals. Like America, India has suffered from terrorist attacks on her own soil. And like America, India is committed to fighting extremists, defeating their hateful ideology, and advancing the cause of human liberty around the world.”

The agreement, Mr Bush said, would help keep America safe by paving the way for India to join the global effort to stop the spread of nuclear weapons.

Several major US companies sent their representatives to the event, hoping to benefit from an accord which the US Chamber of Commerce says could open up $100 billion in opportunities for American business.