India's prime minister said Tuesday he was still trying to push forward a nuclear energy deal with the United States that has been blocked by his sceptical coalition partners.

But communists and left-wing parties, whose MPs prop up the government say any deal involving India being subjected to more international safeguards, including inspections, could harm the country's nuclear weapons programme.

They are also opposed to closer political and strategic ties with Washington.

"The agreement we have signed with the US is an honourable deal, good for India, good for the world and good for non-proliferation," Prime Minister Manmohan Singh told a news conference.

Although he acknowledged that the deal had run into trouble, he said "we remain committed to see that this process is carried forward."

"Already there are efforts to evolve a consensus," he said. "We have not reached the end of the road."

Singh was speaking during a joint news conference with visiting German Chancellor Angela Merkel, who said Germany was eager for business if India managed to enter the global loop of civil nuclear commerce.

"From the point of view of Germany, we would like to see India incorporated into the international (nuclear safeguards) regime… then Germany and India could do a lot together," she said.

Singh has consistently argued that the accord will help India, where the economy is booming with an annual growth rate of nine percent, meet its burgeoning energy needs.

But India's left have threatened to withdraw their support for Singh's Congress party and force early elections.

A special committee made up of members of the Congress party and leftist groups are to meet again on November 16 for further talks on the pact.