The Nuclear Deal
The Indo - US Civil nuclear agreement is a bilateral agreement on nuclear cooperation between
USA and India. The framework for this agreement was laid when India
agreed to separate its civil and nuclear facilities and place the civil facilities
under IAEA(International Atomic Energy Agency) safeguards in 2005. US
gave its full support to Indian civil nuclear cooperation but much of the
debate was caused over the Hyde Act which states that US domestic law
can modify the requirements of the Section 123 of the US Atomic energy
Act, to permit nuclear cooperation with India.The Hyde Act is binding on US whereas it cannot be a binding on India's sovereign decisions but can certainly be a prescriptive for future US reactions. As per Vienna Convention an internal act such as Hyde act cannot supersede an international
123 Agreement.
The 123 Agreement defines the terms and conditions for bilateral civilian nuclear cooperation and requires seperate approvals from the US Congress and Indian cabinet ministers.
IAEA
The IAEA is the world´s center of cooperation in the nuclear field. It was set up as the world´s "Atoms for Peace" organization in 1957 within the United Nations family. The Agency works with its Member States and multiple partners worldwide to promote safe, secure and peaceful nuclear technologies.Three main pillars - or areas of work - underpin the IAEA´s mission: Safety and Security; Science and Technology; and Safeguards and Verification.IAEA approved the safeguards agreement with India.
Significance of Deal
The signing of the bill by President George W Bush in October signalled a new chapter in Indo-US ties. With the clearance of the deal, India has been released from the 30-year-old sanctions during which it was not given any civil nuclear technology to ramp up its energy needs. The ban was imposed soon after India first tested a nuclear bomb at Pokharan, Rajasthan in 1974 . US sponsored NPT (Nuclear Proliferation Treaty) and its subsequent laws, it was their intent to punish India for exploding a nuclear bomb in 1974. They set a date of 1967 as criteria for inclusion in the select group. China was gleeful; as they had exploded their bomb in 1964, hence found their berth in this group automatically. So did France. To exclude India with a fifth of humanity and a bomb was a mistake. India at that time was economically weak.
For 25 years India endured its exclusion for not signing the NPT and was barred from any civilian use nuclear technology and materials. Later US politicians, to placate Pakistan, even blamed India for starting a nuclear arms race. In short, India was ignored. Although China was no better economically then, yet it was welcomed as one of the World powers.
Benefits To US & India
Economically: India is a major importer of technology and Hardware for US, setting up of nuclear plants (10 as targeted by India by 2015) would boost US technology and hardware markets for 6-8 years alone fetching 15-20 US billion dollars. India will get its funds from FDI,commercial Banks and in return India will pay it back with goods and services export, in the same way China did it for the past 25 years. It is a win-win situation for the US lenders and US suppliers.Also previous year 2008 major US companies have invested in India(7-10$ Billion), this combined with the Indian Service and BPO sector would provide strength to US companies.
For India it will be a historic agreement solving India's biggest problem "Electricity" and enabling India to start building infrastructure and manufacturing base on a huge scale.
Politically: India being a major power in south east Asia and controlling the Indian Ocean can be a major US strategic partner.As currently US presence in Iraq and Afganistan is perceived as bullying,India's support can help US to change its image worldwide.
India After a long exile would enter into major world organizations such as UN,WTO,IMF etc. India could become a full member of the select group of G-8 members.
Military : US benefits immensely with India as a major military power. Forty percent of worlds’ oil and commerce passes through the Indian Ocean sea-lanes.Future military expansion in India to take up its role as a regional player bids well for the US military hardware suppliers. They will gain immensely over next 20 years.
Whereas Indian military is in need to diversify its sourcing of military hardware.Its major supplier currently is Russia but Indian Military Aim is to produce the hardware in India it self for that it need to import diversified hardware.
This also solves India's problems as we are no longer struck with in one sided, Iran - Pakistan – India pipeline deal holding India permanently hostage to Pakistan.
Recently:France's Areva claimed a first victory in the race to grab a share of India's lucrative nuclear market with the signing of a multi-billion dollar agreement to build up to six atomic reactors.
Click here to see the events Chronologically >>
USA and India. The framework for this agreement was laid when India
agreed to separate its civil and nuclear facilities and place the civil facilities
under IAEA(International Atomic Energy Agency) safeguards in 2005. US
gave its full support to Indian civil nuclear cooperation but much of the
debate was caused over the Hyde Act which states that US domestic law
can modify the requirements of the Section 123 of the US Atomic energy
Act, to permit nuclear cooperation with India.The Hyde Act is binding on US whereas it cannot be a binding on India's sovereign decisions but can certainly be a prescriptive for future US reactions. As per Vienna Convention an internal act such as Hyde act cannot supersede an international
123 Agreement.
The 123 Agreement defines the terms and conditions for bilateral civilian nuclear cooperation and requires seperate approvals from the US Congress and Indian cabinet ministers.
IAEA
The IAEA is the world´s center of cooperation in the nuclear field. It was set up as the world´s "Atoms for Peace" organization in 1957 within the United Nations family. The Agency works with its Member States and multiple partners worldwide to promote safe, secure and peaceful nuclear technologies.Three main pillars - or areas of work - underpin the IAEA´s mission: Safety and Security; Science and Technology; and Safeguards and Verification.IAEA approved the safeguards agreement with India.
Significance of Deal
The signing of the bill by President George W Bush in October signalled a new chapter in Indo-US ties. With the clearance of the deal, India has been released from the 30-year-old sanctions during which it was not given any civil nuclear technology to ramp up its energy needs. The ban was imposed soon after India first tested a nuclear bomb at Pokharan, Rajasthan in 1974 . US sponsored NPT (Nuclear Proliferation Treaty) and its subsequent laws, it was their intent to punish India for exploding a nuclear bomb in 1974. They set a date of 1967 as criteria for inclusion in the select group. China was gleeful; as they had exploded their bomb in 1964, hence found their berth in this group automatically. So did France. To exclude India with a fifth of humanity and a bomb was a mistake. India at that time was economically weak.
For 25 years India endured its exclusion for not signing the NPT and was barred from any civilian use nuclear technology and materials. Later US politicians, to placate Pakistan, even blamed India for starting a nuclear arms race. In short, India was ignored. Although China was no better economically then, yet it was welcomed as one of the World powers.
Benefits To US & India
Economically: India is a major importer of technology and Hardware for US, setting up of nuclear plants (10 as targeted by India by 2015) would boost US technology and hardware markets for 6-8 years alone fetching 15-20 US billion dollars. India will get its funds from FDI,commercial Banks and in return India will pay it back with goods and services export, in the same way China did it for the past 25 years. It is a win-win situation for the US lenders and US suppliers.Also previous year 2008 major US companies have invested in India(7-10$ Billion), this combined with the Indian Service and BPO sector would provide strength to US companies.
For India it will be a historic agreement solving India's biggest problem "Electricity" and enabling India to start building infrastructure and manufacturing base on a huge scale.
Politically: India being a major power in south east Asia and controlling the Indian Ocean can be a major US strategic partner.As currently US presence in Iraq and Afganistan is perceived as bullying,India's support can help US to change its image worldwide.
India After a long exile would enter into major world organizations such as UN,WTO,IMF etc. India could become a full member of the select group of G-8 members.
Military : US benefits immensely with India as a major military power. Forty percent of worlds’ oil and commerce passes through the Indian Ocean sea-lanes.Future military expansion in India to take up its role as a regional player bids well for the US military hardware suppliers. They will gain immensely over next 20 years.
Whereas Indian military is in need to diversify its sourcing of military hardware.Its major supplier currently is Russia but Indian Military Aim is to produce the hardware in India it self for that it need to import diversified hardware.
This also solves India's problems as we are no longer struck with in one sided, Iran - Pakistan – India pipeline deal holding India permanently hostage to Pakistan.
Recently:France's Areva claimed a first victory in the race to grab a share of India's lucrative nuclear market with the signing of a multi-billion dollar agreement to build up to six atomic reactors.
Click here to see the events Chronologically >>
