CCS/MSP430F6435: Code stuck in Interrupt flag, UCRXIFG

Tool/software: Code Composer Studio

I am currently stuck at this UCRXIFG polling condition. The code gives +++ to a xbee and waits for the OK response from the device. I am using a different clock structure for my system, XT1 = 32K and XT2 = 32M. Is some setting wrong in the clock configuration because the UART calculations are correct to the best of my knowledge. Attaching my code for referral

#include <stdio.h>
#include <msp430.h>

void vGpio_Init(void)
{

        // Configure all GPIO to Output Low
        // Make sure there is no pin conflict with respect to schematic
        P1OUT = 0x00; P2OUT = 0x00; P3OUT = 0x00; P4OUT = 0x00;
        P5OUT = 0x00; P6OUT = 0x00; P7OUT = 0x00; P8OUT = 0x00;
        P9OUT = 0xFF;

        P1DIR = 0xFF; P2DIR = 0xFF; P3DIR = 0xFF; P4DIR = 0xFF;
        P5DIR = 0xFF; P6DIR = 0xFF; P7DIR = 0xFF; P8DIR = 0xFF;
        P9DIR = 0xFF;

}

void vMspclock_init(void)
{
    //-----------
    //General Settings
    P7SEL |= BIT2+BIT3;                       // Port select XT2

    UCSCTL6 &= ~XT1OFF;                         // Enable XT1 for RTC_B
    UCSCTL6 |= XCAP_3 | XT1BYPASS;             //Internal load cap 12pF configuration
    UCSCTL6 &= ~XT2OFF;                        // Enable XT2 for MCLK, SMCLK, ACLK
    UCSCTL3 |= SELREF_2;                       // Reference to FLL is given from XT2
    UCSCTL6 |= XT2DRIVE_3;                      //Selecting high current drive capacity and current consumption for 32 MHz crystal
    //UCSCTL7                                   //This register is used to check oscillator fault flag, ie if there  is some error in the osc due to supply conditions

    //Init MCLK
    UCSCTL4 |= SELM_5;                         //Uses XT2(32MHz) crystal oscillator source
    UCSCTL5 |= DIVM_3;                          //Divides the clock source by 32, ie. 32/1 = 32Khz

    //Init SMCLK
    UCSCTL4 |= SELS_5;                         ////Uses XT2(32MHz) crystal oscillator source
    UCSCTL5 |= DIVS_0;                          //Divides the clock source by 1, ie. 32/1 = 32Khz

    //Init ACLK
    UCSCTL4 |= SELA_5;                         ////Uses XT2(32MHz) crystal oscillator source
    UCSCTL5 |= DIVA_3;                          //Divides the clock source by 8, ie. 32/8 = 4Khz
    //UCSCTL5 |= DIVPA_3;                          //This can divide the ACLK source available at external pin by any value like previous line

    do
    {
      UCSCTL7 &= ~(XT2OFFG + XT1LFOFFG + XT1HFOFFG + DCOFFG);
                                              // Clear XT2,XT1,DCO fault flags
      SFRIFG1 &= ~OFIFG;                      // Clear fault flags
    }while (SFRIFG1&OFIFG);                   // Test oscillator fault flag
}

void vUART_INIT(void)
{
    P8SEL |= 0x04;                      //For TX pin
    P8DIR |= 0x04;

    P8SEL |= 0x08;                      //For RX pin

    UCA1CTL1 |= UCSWRST;                //Essential to set this bit as all the registers are configurable only when UCSWRST = 1

    UCA1CTL1 |= UCSSEL__SMCLK;          //CAN also be written as UCA0CTL1 |= UCSSEL_1;//to SELECT THE CLOCK SOURCE OF THE UART communication
                                        //For reference of calculation - processors.wiki.ti.com/.../USCI_UART_Baud_Rate_Gen_Mode_Selection
    UCA1BR0 = 0x52;                     //These 2 registers represent the calculation for the baud rate according to the frequency of the clock
    UCA1BR1 = 0x00;                     //32000000/16*(1/38400)=52, so lsb = 52 and msb =0
    UCA1MCTL = UCOS16 | UCBRF_1;        //first setting sets the oversampling mode, second bit is the calculation for the UCBRF
    //UCA1MCTL = UCBRS_2;
    UCA1CTLW0 &= ~UCSWRST;              //Clearing the register to start the UART configuration
}


/**
 * hello.c
 */
int main(void)
{
	WDTCTL = WDTPW | WDTHOLD;	// stop watchdog timer
    char send_init[3]={'+','+','+'};
    int i; char rxbit;

    vGpio_Init();
    vMspclock_init();
    vUART_INIT();

    for(i=0;i<3;i++)
    {
        while(!(UCA1IFG & UCTXIFG));        //Poll for transmit interrupt flag
        UCA1TXBUF = send_init[i];           // Transmit data
        UCA1IFG &=~(UCTXIFG);
    }

    for(i=0;i<10000;i++);       //waiting for the ok responce

    for(i=0;i<3;i++)
    {
        while(!(UCA1IFG & UCRXIFG));        //Poll for transmit interrupt flag----CODE STUCK HERE
        rxbit = UCA1RXBUF;
        UCA1IFG &=~(UCRXIFG);
        printf("%d ", rxbit);
    }

	printf("Hello World!\n");

	return 0;
}

I am a newbie and any help would be appriciable

Onkar