Early Elections?

All signs are pointing towards an early General Election. Several months ago it seemed almost certain but various issues cropped up and the momentum was lost.

If you recall, last time also there were rumors of the PM resigning over the N-Deal. But Congress quickly squashed those rumors. The FM claimed that the rumors were responsible for the stock market crash.

CNN-IBN is reporting that the PM has threatened to resign if the left does not cooperate over the N-Deal:

Prime Minister Manmohan Singh has indicated that he would resign if the Indo-US Civil Nuclear Agreement doesn't go through. Senior government sources have told CNN-IBN that the PM has communicated his desire to resign to Congress President Sonia Gandhi earlier in the week. It is a move that has only intensified after his confrontation with the Left over the nuclear deal. [link]

That the PM was always serious about the N-Deal was beyond any doubts (except that now that a "liberal" Government rules Australia, pretty much half of world's Uranium is out of bounds).
But it was amply clear that if the Government were to fall over the N-Deal, it had to have the support of "high command".

It looks like the "high command" is finally ready to relent.

There is not much upside for Congress to hang around any longer than this. The major populist programs have already been implemented (OBC quotas, NREGS, loan waiver). The loan waiver is being fast-tracked to end of June. On the other hand, realistically, inflation is not going to abate anytime soon, nor is oil prices.

More significantly, waiting for the upcoming state elections may not add much value, given that there is a great deal of turmoil in the ranks.

PM's resignation will add to the middle class (iPod + Khaddar) appeal for Congress.

It could be for real this time.