"Day-to-day developments reconfirm our fears that the US wants to convert India into its subordinate ally in South Asia, even before the Indo-US nuclear deal has come into effect. This is a very ominous development," Politburo member Sitaram Yechury told reporters in New Delhi.

The CPI(M) leader said the 123 agreement, which was "firmly anchored in the Hyde Act", has fallen short "not just of our objections but of the assurances of Prime Minister Manmohan Singh himself."

Maintaining that American "pressure" was working not just on the government to "shift" its foreign policy but on Indian companies as well, Yechury said the deal was "lot more than only nuclear cooperation, it has a larger agenda ...to convert India as a subordinate ally of the US in South Asia.”

In this context, he referred to India's non-participation in a scheduled meeting with Iran and Pakistan on the gas pipeline and said "not going for the project or delaying it is not in India's interest. It is clearly succumbing to US pressures".

Yechury said the State Bank of India had "suddenly prohibited" extending their line of credit to Iranian firms and stopping Indian exports to that country.