Vienna: Governors of the UN nuclear watchdog approved an inspections plan for India on Friday, a key step towards finalising a US-Indian nuclear cooperation deal, according to diplomats who attended the closed meeting.

With the go-ahead from International Atomic Energy Agency governors, India will now seek a waiver from 45 nuclear supplier nations allowing trade with a non-NPT country, then ratification from the US Congress, to finalise the deal.

The accord would open up to India the world market in atomic materials and technology for civilian use, but is controversial since New Delhi has conducted nuclear test explosions and never joined the global Non-Proliferation Treaty (NPT).