WASHINGTON (CNN) -- President Bush signed into law Monday a bill that will allow the United States to ship civilian nuclear fuel and expertise to India.

The bill, officially called the Henry J. Hyde United States-India Peaceful Atomic Energy Cooperation Act of 2006, will "strengthen the partnership between the world's two largest democracies," Bush said. He added that the two countries are "united by deeply held values," calling India "an important ally in the war against extremists and radicals."

Bush predicted that the pact will help India -- the world's fifth-largest consumer of energy -- reduce its greenhouse emissions. At present, India produces nearly 70 percent of its electricity by burning coal.

Bush's move has provoked anger from Pakistan, South Asia's other nuclear power. Pakistani officials have argued that their nation should be eligible for similar deals.