New Delhi, January 6, 2025 — This was an extraordinarily significant thrust in the US-India relationship: The US has promised to remove long-standing regulatory obstacles preventing American companies from cooperating with Indian nuclear entities.
This was announced by US National Security Adviser Jake Sullivan during his visit to New Delhi, where he met with his Indian counterpart, NSA Ajit Doval.
Historical Context
In 2005, a landmark civil nuclear agreement laid the groundwork for civil nuclear cooperation between the US and India, allowing India to secure civilian nuclear technology and fuel from the US.
However, this cooperation has been stymied because of Indian nuclear liability laws, wherein suppliers may be held liable for accidents, which differ from the international norm placing liability primarily on operators. Such discrepancies have turned away American nuclear enterprises from entering Indian markets.
Sullivan declared, “The United States is finalizing the necessary steps to remove longstanding regulations that have prevented civil nuclear cooperation between India’s leading nuclear entities and U.S. companies.” This is seen as an attempt to “turn the page on the frictions of the past” and acknowledges India’s “open and transparent engagement” with the US.
Recent Developments
The removal of Indian nuclear entities from the US restricted trade list will open the door to American nuclear technology and services in India’s markets, aiding in the establishment of resilient clean energy supply chains and fortifying the strategic partnership of both countries.
Strategic Implications
This announcement comes at a time when both countries are looking to deepen their collaboration into various sectors which include defense, cyber, and maritime security. The lifting of these regulatory hurdles will open the way for the construction of US nuclear power plants in India, a proposition that has been under discussion since 2019. Such projects would substantially contribute to India’s energy security and its goals for clean energy transition.
Challenges Ahead
Though this move is encouraging, a number of challenges remain. The alignment of India’s nuclear liability law with international standards is required in order to attract investments and technology for this sector.
Besides, both countries will have to face many regulatory and technical obstacles as the two countries seek to realize the full potential of this cooperation.
The United States decision to delist Indian nuclear entities marks a watershed moment in Indo-US relations and speaks of their mutual commitment to transcending past hurdles and synergizing their efforts in building a solid partnership in civil nuclear energy.
With both nations working towards finalizing these regulatory amendments, the prospect of future collaborations in nuclear energy appears bright and can pave the way for energy security, economic growth, and geopolitical stability.
