Nuclear Deal

WHAT IS THE PACT?

* The legislation amends Section 123 of the Atomic Energy Act of 1954. It lets the US make a one-time exception for India to keep its nuclear weapons without signing the Nuclear Non-Proliferation Treaty (NPT).

Thanks to diplomatic and political skills of Prime Minister Manmohan Singh and UPA government, we have a deal which could lift India into the Trillion-dollar club, faster. They have worked hard. Ten years from now when electricity supply situation in India’s households, industry and farms is significantly better, we have to thank them .

What does India get out of the Deal?

Benefits to India are immense with this deal. First and foremost, is the de-facto recognition of India as a nuclear power? It is not clearly stated in the deal, but it’s an implicit understanding. India missed this opportunity in 1970-78. It is unlikely that this opportunity is to be missed again. Second, is future recognition of India as a permanent UN Security Council member? India has tried this in last three years. It has not succeeded. It is unlikely to succeed in next 10 years. But with a Trillion and a half dollar economy (8% growth over ten years), India will make this grade. When UN reforming movement gains strength in the future, India will be right there and waiting for this opportunity.

From an Indian perspective, what exactly does the nuclear deal accomplish? The direct benefits to India are three-fold: Increased energy diversity, greater access to technology and the potential for newer and deeper strategic partnerships

Technologically, India has been denied access to vital scientific know-how since its nuclear weapons test in 1974. The technological denial has applied not only to expertise related to civilian nuclear energy, but also to various 'dual-use' technologies, such as propulsion and electronic systems, which could theoretically be used for military purposes. It has applied even to a range of seemingly innocuous agriculture- and health-related technologies. The nuclear deal explicitly and implicitly eliminates these technological barriers.

Indian military is in need to diversify its sourcing of military hardware. Russia has been a very reliable source for the past 40 years. This source has to be diversified. Ultimately all military hardware will have to be produced in India. But development time in India is too long and success factor is low. This has to be speeded up. The only way at India’s disposal is buy its immediate needs and import technology to develop its own weapon system. It is a bit expensive up front but pays dividend later as India joins the select group of countries as a source of military hardware.

After 50 years of isolation, India will have the opportunity to say something, in world forums like UN, WTO and World monetary lending institutions, and be heard. This was not the case previously. Reasons – India had no clout. With western economies in the future, tied more and more with India, the latter’s clout will improve. There will be frequent inter-government exchanges on matters of mutual interest.