The government is considering resuming large-scale economic aid to India as early as this summer, nearly two years after New Delhi's nuclear tests prompted Japan to suspend assistance, government sources said Thursday.

The move comes amid growing pressure from within the ruling Liberal Democratic Party to completely lift economic sanctions against India to repair soured bilateral relations.

The sources said the government is specifically considering extending fresh yen loans for a subway project in New Delhi and a power project in the southeastern province of Andhra Pradesh.