The Nuclear Suppliers Group, a consortium of 45 nations, voted Saturday in Vienna to lift a ban on nuclear fuel exports to India, which plans to build eight nuclear power reactors, CNN reported.

Indian Prime Minister Manmohan Singh hailed the vote as a key move that will speed the country's entry into the ranks of economically advanced nations.

"It is a recognition of India's impeccable non-proliferation credentials and its status as a state with advanced nuclear technology," he told reporters. "It will give an impetus to India's pursuit of environmentally sustainable economic growth."

U.S. backers of the deal, including U.S. Secretary of State Condoleezza Rice, said it will strengthen ties between the two countries. Some observers said stronger relations between the U.S. and India could offset China's quick rise as an economic powerhouse, The New York Times (NYSE:NYT) reported.

The newspaper said critics warn the NSG vote set a dangerous precedent because India, which possesses atomic weapons, has refused the sign the global nonproliferation treaty.