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Challenges in the U.S.-India Civil Nuclear Deal UPSC NOTE

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  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 ten...

 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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Learnerz IAS | Concept oriented UPSC Classes in Malayalam: Challenges in the U.S.-India Civil Nuclear Deal UPSC NOTE
Challenges in the U.S.-India Civil Nuclear Deal UPSC NOTE
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