The Genesis of the Indo-US Civil Nuclear Deal

• The inception of the Indo-US nuclear agreement took place in July 2005, during the visit of the then Indian Prime Minister Manmohan Singh to the US.
• On 18th July 2005, Singh and the then US President George Bush, in a joint statement, announced their agreement to enter into a civil nuclear deal.
• This announcement came about 30 years after the US had put sanctions on India following her first nuclear weapons testing in 1974.
• This was a landmark occasion also because this was the first time that India was being recognized as a nuclear weapons state.
• This visit by Singh also marked the completion of the Next Steps in Strategic Partnerships (NSSP), which sought to augment cooperation in civilian nuclear activities, civilian space programs, high-technology trade, and missile defence. The NSSP had been announced in January 2004.
• The core of the agreement was the focus on non-proliferation of weapons of mass destruction.
• The agreement accorded India the same status as signatories of the Non-Proliferation Treaty (NPT), despite India not being a signatory.
• Even though the American administration had imposed sanctions on India after the 1998 nuclear tests, these tests had little or no impact on India because of its large domestic sector and the size of the Indian economy. In 2001, the Bush government decided to lift all sanctions on India.
• The deal with the US was to end the isolation of India on the civil nuclear front.

India and the NPT

• NPT signatories have a recognised right of access to peaceful uses of nuclear energy and an obligation to cooperate on civilian nuclear technology.
• Also, the Nuclear Suppliers Group (NSG) has agreed on guidelines for nuclear exports that include fuel and reactors.
• These guidelines ensure that nuclear energy usage is not diverted from peaceful to destructive uses/weapons programs.
• India has not signed the NPT arguing that the treaty creates an exclusive club of nuclear states by restricting the legal possession of nuclear weapons to those countries that tested them before 1967. And, that it does not address the problem of nuclear proliferation.
• The NSG is also a US-led consortium that controls the export of nuclear equipment, materials, and technology.
• India, having been left out of the global nuclear order, was free to develop its indigenous systems and technology, and has also found success, in the form of fast breeder reactors and thorium breeder reactors.
• Thus, India has developed its nuclear weapons technology.
• However, India’s uranium reserves are not enough to meet its power generation requirements. Here, the NSG’s uranium import restrictions affected India’s power generation capabilities.

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Key Features of the Indo-US Civil Nuclear Deal

1. The Agreement is between two States possessing advanced nuclear technology, with both parties enjoying the same benefits and advantages.
2. The Deal will enable full civil nuclear energy cooperation between both countries.
3. The Deal encompasses nuclear reactors and aspects of the nuclear fuel cycle such as reprocessing and encroachment.
4. The Agreement provides for the creation of a nuclear fuel strategic reserve to hedge against any disruption in the supply over the lifespan of India’s reactors.
5. The Agreement provides for the transfer of nuclear material, nuclear trade, equipment, components, and related technologies and cooperation in nuclear fuel cycle activities.
6. The Agreement provides for the application of International Atomic Energy Agency (IAEA) safeguards to transfer material and equipment.

Chronology of the Indo-US Civil Nuclear Deal

1. The initial talks for the civil nuclear deal took place during Manmohan Singh’s visit and joint statement with Bush in 2005. In 2006, Bush visited India and made a similar joint statement with the Indian PM.
2. In July 2006, the US House of Representatives passed the Hyde Act, which stated that Washington will cooperate with New Delhi on nuclear issues and exempt it from signing the NPT.
3. There were protests in India, particularly from the Left parties demanding a detailed discussion on the deal from the government.
4. In December 2006, Bush signed into law legislation on Indian atomic energy.
5. The negotiations between India and the US were concluded in July 2007.
6. In August 2007, both governments released the 123 Agreement.
7. In July 2008, the draft of the India-specific safeguards accord with the IAEA was circulated to the Board of Governors for their approval.
8. In August 2008, these safeguards were adopted by the IAEA unanimously.
9. On 8th October 2008, President Bush signed the legislation that made the Indo-US civil nuclear agreement into law.
10. On June 8, 2016, the Nuclear Power Corporation of India (NPCI) and Westinghouse, a private enterprise in energy-related ventures, agreed to conclude contractual arrangements for 6 reactors by June 2017.

How did the Indo-US Nuclear Deal Benefit India?

• The shortage of Uranium for Indian Nuclear Power Plants was taken care of.
• Nuclear Power plants of India started running at greater efficiency due to imports of Uranium. India does not have high reserves of Uranium, so India had to rely on imports of Uranium. The Indo-US nuclear deal enabled India to import Uranium from different countries.
• Post Indo-US nuclear deal, India signed agreements for import of Uranium from Australia, Canada, Kazakhstan, France, Russia.
• From 2008-09 to 2017-18, India imported more than 7800 metric tons of nuclear fuel.
• After the Indo-US nuclear deal, it paved way for India’s membership in other export control groupings like Australia Group, Wassenaar Agreement, Missile Technology Control Regime (MTCR).
• After the Indo-US nuclear deal, India was able to gain access to critical technologies in strategic areas.

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