22 January 2025 : The Hindu Editorial Analysis

1. Time to seize the promise of the U.S.-India nuclear deal

(Source – The Hindu, International Edition – Page No. – 8)

Topic: GS2 – International Relations

Context

The U.S.-India civil nuclear deal, finalized in 2008, aimed to enhance bilateral relations but faces challenges in liability, technology, and cost barriers.

A Transformative Agreement

• The U.S.-India civil nuclear deal was approved by the U.S. Congress in 2008 after years of negotiation since 2005.
• The deal marked a new era in the U.S.-India defense and strategic cooperation.
• It fostered trust in handling advanced technologies and paved the way for collaborations in defense, technology transfer, and intelligence sharing.

India – US Civil Nuclear Deal (123 Agreement)

Background: Signed in 2008, the deal marked a major shift in US policy, ending India’s nuclear isolation since its 1974 nuclear tests. Key Objective: To facilitate civil nuclear energy cooperation while ensuring non-proliferation commitments. Nuclear Supplier Group (NSG) Waiver: India received a special waiver to engage in global civil nuclear trade despite not being a signatory to the Nuclear Non-Proliferation Treaty (NPT). Provisions: US agreed to provide nuclear fuel, technology, and reactors for India’s civilian nuclear energy program. India committed to separating its civil and military nuclear facilities and placing civil facilities under International Atomic Energy Agency (IAEA) safeguards. Strategic Significance:Strengthened India-US strategic partnership.Boosted India’s energy security and nuclear power capacity.Positioned India as a responsible nuclear power.

Unrealized Promises of the Deal

• The expected benefits in the energy and commercial sectors have not materialized.
• The deal envisioned the construction of nuclear plants using U.S. technology, creating jobs and producing clean energy.
• Westinghouse’s plan to build six nuclear plants in India, announced in 2016, has yet to materialize.

Recent Developments in Regulatory Frameworks

• U.S. National Security Adviser Jake Sullivan announced efforts to remove barriers to civil nuclear cooperation.
• Initially, around 200 Indian entities were on the U.S. Entity List, limiting business opportunities.
• Most entities were removed post-deal, but concerns over technology leakage kept some on the list.

The Liability Risk Issue

• India’s Civil Liability for Nuclear Damage Act, 2010, placed liability on suppliers rather than operators, unlike international norms.
• This discouraged major U.S. companies like GE and Westinghouse from participating.
• To address liability concerns, India introduced an insurance scheme involving General Insurance Corporation and other government entities.
• While Russian companies accepted this arrangement, U.S. companies have not.

Challenges in Technology and Costs

• Rapid advancements in nuclear technology have created challenges for U.S. companies to meet India’s expectations.
• Cost overruns in U.S. nuclear projects have raised concerns about affordability for Indian consumers.
• Indian officials remain cautious about projects that might lead to increased electricity costs without sufficient benefits.

Need for Joint Efforts

• U.S. companies alone cannot overcome the challenges related to liability, technology, and cost.
• Collaboration between the U.S. government, Indian authorities, and nuclear companies is essential.
• Achieving the deal’s full potential could yield immense benefits, including clean energy and stronger U.S.-India ties.

Conclusion

• The U.S.-India civil nuclear deal represents a milestone in bilateral relations, but significant barriers remain.
• Resolving issues related to liability, technology, and cost is crucial to realizing its promise.

PYQ: In what ways would the ongoing US-Iran Nuclear Pact Controversy affect the national interest of India? How should India respond to this situation? (250 words/15m) (UPSC CSE (M) GS-2 2018)

Practice Question:  Discuss the challenges impeding the full implementation of the U.S.-India civil nuclear deal and suggest measures to overcome these hurdles. (250 Words /15 marks)

For more such UPSC-related The Hindu editorial analysis: –21 January 2025 : The Hindu Editorial Analysis