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16th January 2025 (15 Topics)

The next chapter in India-US Nuclear Partnership

Context

The US Bureau of Industry and Security (BIS) removed three Indian nuclear entities — Bhabha Atomic Research Centre (BARC), Indira Gandhi Centre for Atomic Research (IGCAR) and the Indian Rare Earths Limited (IREL) — from its ‘Entity List’ in order to enhance civilian nuclear cooperation between the two countries.

What is US’s Entity List?

  • The US Entity List is a list of foreign individuals, businesses and organisations that are subject to export restrictions and licensing requirements for certain goods and technologies.
  • The list — compiled by the BIS of the US Department of Commerce — is ostensibly used to prevent unauthorised trade in items that could be diverted to terrorismweapons of mass destruction(WMD) programmes, or other activities that are perceived by the US as going against its foreign policy or national security interests.

Impact of the move

  • The move will allow for “closer cooperation between the United States and India to secure more resilient critical minerals and clean energy supply chains”.
  • The amendment to the export controls list would allow the affected entities to enter into deeper collaboration with the US, its private sector, and its scientists and technologists in order to further civilian nuclear cooperation.

Background: The India-US Nuclear Deal

  • The lifting of these restrictions brings attention back to the landmark 2008 India-US Civil Nuclear Agreement.
  • This deal, finalized after three years of tough negotiations, ended India’s nuclear isolation and opened the door for India to access civilian nuclear technology from countries like the US.
  • This agreement was a major turning point in India-US relations, overcoming long-standing hurdles related to nuclear non-proliferation.
  • The deal allowed India to engage with the global nuclear community despite not signing the Nuclear Non-Proliferation Treaty (NPT).
  • The US played a key role in India’s nuclear and space programs, but following India’s nuclear tests in 1974 and 1998, global attitudes towards India became cautious. The 2008 deal helped overcome these tensions and paved the way for future cooperation.
Why Nuclear Energy Matters Now
  • Nuclear energy is increasingly being seen as essential in meeting the growing demand for electricity, particularly with the rise of technologies like artificial intelligence and data centers, which require large amounts of power.
  • Tech giants like Amazon and Microsoft are investing in nuclear energy to meet their energy needs, despite the higher costs.
  • Nuclear energy is considered a clean source of power, which makes it a key part of the global push for sustainable energy solutions.
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