Prepared By: Rajeeve.L, MA(Socio), MBA(Finance), PGDCA
E-mail : Rajeeve_lp@yahoo.com
The Indo- US Nuk Deal-
Left parties advocates for whom?
With the financial reforms in the last decade India could attain a two digit economic growth in the recent past.. India’s strong base in manpower and avenues of development and her geographical peculiarity attracted the world nations to tie-up with India. India cannot fulfill the ever-growing requirement of the economy by depending on coal, oil, gas and hydropower alone. India has to increase its nuclear energy-generation capacity, which is not possible unless the restrictions imposed on it get lifted. The nuclear deal with the US provides the best opportunity to end India's nuclear isolation at the international level. The world is looking at India with renewed hope, as it did in the first decade after Independence
The Nuclear deal with US
The Nuclear deal with US is an opportunity to share a common vision of growth in the use of nuclear energy to increase the supply of electricity, promote economic growth and development. It is important to see that the civilian nuclear deal will lead to a much larger nuclear power generation potential, which is imperative in these pollution-conscious times. The Indo-US civil nuclear deal was the vital component of agreements signed on July 18 (J18) for a strategic partnership in a more meaningful manner especially in the context of cold war and nuclear orthodoxy. In J18, the U.S. pledged to "work with friends and allies to adjust international regimes to enable full civil nuclear energy cooperation and trade with India".
The 123 agreement
The US Congress in December approved a law -- called the "Hyde Act" -- laying out a framework for the detailed civil nuclear cooperation deal the United States and India concluded this past summer. With this deal, a new phase in form of Indo – US commerce is set to begin. India has to take advantage of it in every possible way. The Article 14 of the 123 provides effective protection for India.The Government should consider the merit of adding a further layer of insurance under domestic statute just to be doubly sure. By ammenting the existing Atomic Energy Act of 1962 India can effectively balabce the provisions of the Hyde Act, since India would be bound by its own internal law not to oblige US law. Once the Indo –US commercial ties are on firm footings there will be opportunities to remove any offending provision in the Henry Hyde Act. Certainly these opportunities are already there. The Indo-US civil nuclear deal would give India the flexibility to buy nuclear fuel not only from the US, but also from countries like France, Russia or even Australia
Benefits of the deal
What does India get out of this deal is a potential question raised from all corners. India is striving for long time to the de-facto recognition as nuclear power and future recognition as a permanent member in the UN Security Council. When UN reforming movements gains strength in the future, India will be right there.
India needs FDI to build its infrastructure and manufacture base. The only source is US and Europe, which at this moment are contact with sending capital to Chine to supply them with consumer goods. By this deal they will turn their business to India. India in turn within ten years will have a workforce sufficiently skilled to undertake all the foregoing. It will be beneficial to US since the labour costs in India will stay a third of US and Europe’s cost. Politically India get the opportunity to be heard its voice in the forums like UN, WHO and world money lending institutions. Technologically, India would get the latest technology for nuclear power generation. The deal could lift India in to the Trillion-dollar club, faster.
In the power sector India can make a leapfrog .The eight power reactor being built would after completion as pa part of this deal, would lead to an increase in nuclear power generation from the current 3360 MW to 7280 MW. This will significantly help to improve the electricity supply situation in Indian households, industry and farmers. The agreement would certainly have major benefits for the development of India's industries, both public and private. Once the nuclear hurdle is cleared, the prospects of a huge magnitude of trade and investment will open up wide
Who opposes the deal?
Chine as the usual belligerent, do not wish India to match them in the industrial might, develop more potential nuclear weapons. The Chinese communist party in its official media have made a frontal assault on the landmark Indo-US nuclear pact and cautioned of its “negative impacts” on the global nuclear order. The Chinese criticism of the Indo-US pact is in contrast to the solid support for the deal from Russia, France, Britain and Canada. At the same time China supported Pakistan’s nuclear weapon program in the 1980’s and missile capabilities in the 1990’s. China tried their best to defeat India’s attempt to find a birth in the UN Security Council earlier in this year. Report suggests that China has conveyed to the White House that it would not veto the nuclear agreement signed between India and the United States at the Nuclear Suppliers Group (NSG) meeting.
Several powerful nations do not want to lose out on the nuclear contracts that are likely to follow. Russia sees India as a major market and has been keen on expanding nuclear links with India. British Prime Minister Tony Blair has endorsed the US decision. French President Jacques Chirac has been the first international leader to speak of the need to accommodate India into the global nuclear order.
Prepared By: Rajeeve.L, MA(Socio), MBA(Finance), PGDCA
E-mail : Rajeeve_lp@yahoo.com
