The U.S.-India Nuclear Deal

A proposed groundbreaking nuclear deal between the United States and India is raising questions and concern in both countries.

Last updated November 5, 2010 8:00 am (EST)

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Introduction

The U.S. Congress on October 1, 2008, gave final approval to an agreement facilitating nuclear cooperation between the United States and India. The deal is seen as a watershed in U.S.-India relations and introduces a new aspect to international nonproliferation efforts. First introduced in the joint statement released by President Bush and Indian Prime Minister Manmohan Singh on July 18, 2005, the deal lifts a three-decade U.S. moratorium on nuclear trade with India. It provides U.S. assistance to India’s civilian nuclear energy program, and expands U.S.-India cooperation in energy and satellite technology. But critics in the United States say the deal fundamentally reverses half a century of U.S. nonproliferation efforts, undermines attempts to prevent states like Iran and North Korea from acquiring nuclear weapons, and potentially contributes to a nuclear arms race in Asia. "It’s an unprecedented deal for India," says Charles D. Ferguson, science and technology fellow at the Council on Foreign Relations. "If you look at the three countries outside the Nuclear Non-Proliferation Treaty (NPT)-Israel, India, and Pakistan-this stands to be a unique deal."

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In July 2009, New Delhi designated two sites for U.S. companies to build nuclear reactors in India. But a nuclear liability law passed by the Indian parliament in August 2010 is causing a rift with U.S. nuclear suppliers. Critics of the law contend India’s proposal to seek legal redress against nuclear suppliers is a sharp deviation from the international liability regime which holds nuclear operators solely responsible in case of an accident. India would also like the United States to relax some of its restrictions on technology transfer to India.

What are the terms of the deal?

The details of the deal include the following:

What kind of technology would India receive in return?

India would be eligible to buy U.S. dual-use nuclear technology, including materials and equipment that could be used to enrich uranium or reprocess plutonium, potentially creating the material for nuclear bombs. It would also receive imported fuel for its nuclear reactors.

What do proponents say about the deal?

Proponents of the agreement argue it will bring India closer to the United States at a time when the two countries are forging a strategic relationship to pursue common interests in fighting terrorism, spreading democracy, and preventing the domination of Asia by a single power. Ashley Tellis of the Carnegie Endowment for International Peace-who was intimately involved in negotiating the civil nuclear agreement with India as senior adviser to the U.S. undersecretary of state for political affairs-said in congressional testimony in 2005 that the deal recognizes this growing relationship by engaging India, which has proven it is not a nuclear proliferation risk. Other experts say the deal lays out the requirements for India to be recognized as a responsible steward of nuclear power. "This is part of a process of making India a more durable and reliable nuclear partner," Schaffer says.
Other experts say the deal:

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What are the objections to the agreement?

Critics call the terms of the agreement overly beneficial for India and lacking sufficient safeguards to prevent New Delhi from continuing to produce nuclear weapons. "We are going to be sending, or allowing others to send, fresh fuel to India--including yellowcake and lightly enriched uranium--that will free up Indian domestic sources of fuel to be solely dedicated to making many more bombs than they would otherwise have been able to make," says Henry Sokolski, executive director of the Nonproliferation Policy Education Center, a nonprofit organization dedicated to improving awareness of proliferation issues. While India has pledged that any U.S. assistance to its civilian nuclear energy program will not benefit its nuclear weapons program, experts say India could use the imported nuclear fuel to feed its civilian energy program while diverting its own nuclear fuel to weapons production. New Delhi has done similar things in the past; India claimed it was using nuclear technology for civilian purposes right up until its first nuclear weapons test in 1974. A Congressional Research Service report (PDF) on the agreement states, "There are no measures in this global partnership to restrain India’s nuclear weapons program."


Other objections raised by experts include:

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Who needs to approve the agreement?

The final terms of the nuclear deal were approved by the following bodies before they could be implemented:

What effect will the U.S.-India deal have on the NPT?

It could gut the agreement, some experts say. Article I of the treaty says nations that possess nuclear weapons agree not to help states that do not possess weapons to acquire them. David Albright, president of the Institute for Science and International Security, says without additional measures to ensure a real barrier exists between India’s military and civilian nuclear programs, the agreement "could pose serious risks to the security of the United States" by potentially allowing Indian companies to proliferate banned nuclear technology around the world. In addition, it could lead other suppliers-including Russia and China-to bend the international rules so they can sell their own nuclear technology to other countries, some of them hostile to the United States. On the other hand, experts like Gahlaut argue the NPT was already failing in its mission to prevent proliferation. She says many countries-including North Korea, Libya, Iran, and Iraq-have cheated while being signatories of the NPT.

What role does China play in the U.S.-Indian nuclear deal?

It is a motivating factor in the deal, some experts say. China’s rise in the region is prompting the United States to seek a strategic relationship with India. "The United States is trying to cement its relationship with the world’s largest democracy in order to counterbalance China," CFR’s Ferguson says. The Bush administration is "hoping that latching onto India as the rising star of Asia could help them handle China," Sokolski says.

Some experts say the growing economic relationship between China and India is so critical to New Delhi that its interests in China cannot be threatened or replaced by any agreement with the United States. Other experts worry U.S. nuclear aid to India could foster a dangerous nuclear rivalry between India and China. Though India has a strong interest in building economic relations with China, New Delhi is still wary of China’s military rise in the region.

What effect will the deal have on U.S. and Indian relations with Pakistan?

Pakistan has not received a similar deal on nuclear energy from Washington. Some experts say this apparent U.S. favoritism toward India could increase the nuclear rivalry between the intensely competitive nations, and potentially raise tensions in the already dangerous region. "My impression is that [the Pakistanis] are worried this will feed the Indian nuclear weapons program and therefore weaken deterrence," Blackwill said. Other experts say the two countries, both admittedly now nuclear, could be forced to deal more cautiously with each other. Pakistan is already a proliferation risk: Pakistani nuclear scientist A.Q. Khan’s illicit nuclear network, revealed in 2004, shocked the world with its brazen trade of nuclear technology. Some experts worry the U.S.-India deal could prompt Pakistan to go elsewhere, for instance to China, for similar terms.

What’s the history of India’s nuclear program?

In the 1950s, the United States helped India develop nuclear energy under the Atoms for Peace program. The United States built a nuclear reactor for India, provided nuclear fuel for a time, and allowed Indian scientists study at U.S. nuclear laboratories. In 1968, India refused to sign the NPT, claiming it was biased. In 1974, India tested its first nuclear bomb, showing it could develop nuclear weapons with technology transferred for peaceful purposes. As a result, the United States isolated India for twenty-five years, refusing nuclear cooperation and trying to convince other countries to do the same. But since 2000, the United States has moved to build a "strategic partnership" with India, increasing cooperation in fields including spaceflight, satellite technology, and missile defense.