India government ally withdraws from coalition, reforms at risk

NEW DELHI (Reuters) - A key regional ally pulled out of India's ruling coalition on Tuesday, jeopardising Prime Minister Manmohan Singh's economic reforms but posing no immediate threat to the minority government, which can survive with the support of other parties.

The withdrawal of the Dravida Munnetra Kazhagam (DMK) could hamper the government's efforts to rein in the budget deficit, spur growth in Asia's third-largest economy and stave off the threat of a downgrade by global credit ratings agencies.