Background of the U.S.-India Civil Nuclear Deal
In 2008, the U.S.-India civil nuclear deal was approved, marking a shift from Cold War tensions to closer U.S.-India strategic ties.
The Coalition for Partnership with India, composed of businesses, Indian-Americans, and academics, played a key role in advocating for the deal.
It aimed to enhance defense cooperation, nuclear energy development, and technology transfer between the two nations.
Initial Hopes and Unfulfilled Promises
The deal was expected to boost India’s nuclear sector with U.S. technology, creating jobs in both countries and reducing reliance on fossil fuels.
Clean energy from nuclear plants would help fuel Indian industry and cut greenhouse gas emissions.
U.S. President Obama’s 2016 announcement of six nuclear plants by Westinghouse in India has not been realized.
Energy and commercial benefits of the deal, such as plant construction and increased electricity generation, remain largely unfulfilled.
Key Obstacles to Progress
The 2010 Civil Liability for Nuclear Damage Act placed liability on suppliers, deterring U.S. companies like GE and Westinghouse from participating.
India tried to ease this through insurance schemes, but U.S. companies were reluctant, unlike Russian firms who accepted sovereign immunity.
Technological Concerns: U.S. companies need to offer the latest nuclear technology, but high costs could increase electricity prices for Indian consumers.
U.S. nuclear plants have experienced cost overruns, leading to concerns about rising electricity costs in India, which officials want to avoid.
Current and Future Challenges
Regulatory Barriers: U.S. National Security Adviser Jake Sullivan mentioned efforts to remove barriers to civil nuclear cooperation between U.S. and Indian companies.
Security Concerns: Some Indian nuclear entities remain on the U.S. Entity List due to fears of technology leakage to adversaries.
While some entities have been removed, security concerns persist, and political challenges remain with both U.S. and Indian governments.
Russian nuclear firms, backed by government support, have progressed in India’s nuclear sector, while U.S. companies hesitate due to liability and geopolitical issues.
The U.S. government needs to address regulatory, liability, and cost obstacles to unlock the full potential of the U.S.-India nuclear deal.
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