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Implications of the US-India nuclear deal
Fri, Oct 03, 2008
AsiaOne

What is the pact?

Overturning a 34-year-old ban, it allows India access to US civil nuclear fuel and technology.

India must separate its civil and military nuclear facilities, and submit civil facilities to inspections by the International Atomic Energy Agency.

Other countries can sell India nuclear technology and fuel. France signed such a deal this week.

Why is it controversial?

It undermines the Non-Proliferation Treaty (NPT), which India did not sign; undercuts Washington's efforts to curtail Iran's nuclear programme; and opens the way for a potential arms race between India and Pakistan.

India says 14 of its 22 nuclear facilities are civilian. The pact could make bomb-making easier at the other eight, as civilian nuclear fuel needs will be met by the US.

Who will benefit?

US and European companies that supply nuclear technology: The deal could open up around US$27 billion (S$39 billion) in investments over the next 15 years.

India: It becomes a de facto nuclear power.

India's economy: By 2030, the economic benefits that will accrue to India's economy as a result of nuclear trade could touch US$500 billion.

Washington: The deal will mean stronger ties between Washington and New Delhi and the US may now have a better chance of winning a $10 billion fighter deal from India.

Who won't benefit?

Pakistan: India's nuclear rival.

China: Some see the India deal as part of US attempts to counterbalance China's influence in Asia.

 

 
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