NEW DELHI (REUTERS) - India's parliamentary affairs minister said on Wednesday that the government was "not a lame duck", a day after a key ally withdrew from the ruling coalition in protest against New Delhi's position on a UN resolution on Sri Lanka.

"We are not a lame duck government, we are absolutely stable," Mr Kamal Nath said at a press conference.

"No political party has come out and challenged the majority of this government."

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.