And if we don't do the deal, India may begin dabbling more with the Chinese on economic deals and ignore America.
I do not think so... its a simplistic view to think that just because of this India will start to ignore America... wish internationl relations were that simple.
Indians do see this deal as the touchstone of America's intent of making India a partner, but the present Indian Government is pragmatic and I think its not going to move closer to China for the sake of scoring a few points. However, I feel it will continue to be close to Russia and France to retain its strategic autonomy.