The 123 agreement is a civil nuclear deal, therefore, it will have no bearing on India's strategic and military programme and India can make a bomb. It is completely out of the ambit of the deal.
Essentially, what the controversy has been over is whether if India conducts a test the Americans under their own laws would have the right to take back all the fuel that they give us.
What are the terms of the deal?
The details of the agreement are still being negotiated, but experts say some clear points are emerging. They include the following:
How does US benefit with this Deal?
Economic benefits to US
If India sets up 10 large size nuclear power plants, which is its intent in next 15 years, India will import technology and hardware from US for at least half of these projects (technology for the remaining may come from elsewhere).
Political Benefits to US
At the moment as long as US stays in Iraq and Afghanistan, the world will perceive US as a big bully. A major regional power, with a different outlook than the European and the US is needed to cool the tempers off.
Military Benefits to the US
US benefits immensely with India as a major military power. Forty percent of worlds’ oil and commerce passes through the Indian Ocean sea-lanes. These today are unprotected. Pirates in the Red Sea and at the Malacca Straits prey on commerce. Indian cooperation will be helpful in keeping the sea-lanes free.
What does India get out of the Deal?
Economic benefits to India
There is an urgent need in India for capital to build its infrastructure and manufacturing base. And there is only one source to get it i.e. US & Europe. US and Europe at this moment are content with sending capital to China to supply them with consumer goods. The former very cleverly had avoided exporting manufacturing technology to supply high priced, high technology capital goods to China. This component together with auto-parts, pharmaceuticals and computer hardware could herald India into big leagues in ten years and beyond. Commercial Aircraft manufacture, ship building, factories to make giant power plants, steel making plants, mining & drilling hardware, petroleum & petrochemical plant building facilities could be ultimately shared with India. The latter within ten years will have a workforce sufficiently skilled to undertake all the foregoing. It will be beneficial to US. Labor costs in India, will always stay a third of US, and European costs. That will make India an ideal candidate for this technology transfer.
Military Benefits to India
Indian military is in need to diversify its sourcing of military hardware. Russia has been a very reliable source for the past 40 years. This source has to be diversified.
Reference
The Henry Hyde Act: Tangible Nuclear Gains
Some of the major criticisms of the act:
By buying into US nuclear cooperation, India will in the future have to choose between that cooperation and other alliances. When our mutual interests collide, as they must, India will be playing what is known in game theory as a game of chicken. Where India has really lost is in signaling that this nuclear cooperation is sacrosanct, and our other considerations are up for negotiation.
The truth is that the Act offers India substantial present benefits. The associated losses are in the future, and the extent of those losses will depend on India’s willingness to take choices that are painful in the short term.
Reference
Essentially, what the controversy has been over is whether if India conducts a test the Americans under their own laws would have the right to take back all the fuel that they give us.
What are the terms of the deal?
The details of the agreement are still being negotiated, but experts say some clear points are emerging. They include the following:
- India agrees to allow inspectors from the International Atomic Energy Association (IAEA), the United Nations' nuclear watchdog group, access to its civilian nuclear program. But India would decide which of its many nuclear facilities to classify as civilian.
- India commits to signing an Additional Protocol —which allows more intrusive IAEA inspections—or its civilian facilities.
- India agrees to continue its moratorium on nuclear weapons testing.
- India commits to strengthening the security of its nuclear arsenals.
- India works toward negotiating a Fissile Material Cutoff Treaty (FMCT) with the United States banning the production of fissile material for weapons purposes.India agrees to prevent the spread of enrichment and reprocessing technologies to states that don't possess them and to support international nonproliferation efforts.
- U.S. companies will be allowed to build nuclear reactors in India and provide nuclear fuel for its civilian energy program.
How does US benefit with this Deal?
Economic benefits to US
If India sets up 10 large size nuclear power plants, which is its intent in next 15 years, India will import technology and hardware from US for at least half of these projects (technology for the remaining may come from elsewhere).
Political Benefits to US
At the moment as long as US stays in Iraq and Afghanistan, the world will perceive US as a big bully. A major regional power, with a different outlook than the European and the US is needed to cool the tempers off.
Military Benefits to the US
US benefits immensely with India as a major military power. Forty percent of worlds’ oil and commerce passes through the Indian Ocean sea-lanes. These today are unprotected. Pirates in the Red Sea and at the Malacca Straits prey on commerce. Indian cooperation will be helpful in keeping the sea-lanes free.
What does India get out of the Deal?
Economic benefits to India
There is an urgent need in India for capital to build its infrastructure and manufacturing base. And there is only one source to get it i.e. US & Europe. US and Europe at this moment are content with sending capital to China to supply them with consumer goods. The former very cleverly had avoided exporting manufacturing technology to supply high priced, high technology capital goods to China. This component together with auto-parts, pharmaceuticals and computer hardware could herald India into big leagues in ten years and beyond. Commercial Aircraft manufacture, ship building, factories to make giant power plants, steel making plants, mining & drilling hardware, petroleum & petrochemical plant building facilities could be ultimately shared with India. The latter within ten years will have a workforce sufficiently skilled to undertake all the foregoing. It will be beneficial to US. Labor costs in India, will always stay a third of US, and European costs. That will make India an ideal candidate for this technology transfer.
Military Benefits to India
Indian military is in need to diversify its sourcing of military hardware. Russia has been a very reliable source for the past 40 years. This source has to be diversified.
Reference
The Henry Hyde Act: Tangible Nuclear Gains
Some of the major criticisms of the act:
- Nuclear cooperation is not full and excludes enrichment and reprocessing technology, which we need to complete our three-stage nuclear fuel cycle.
- India does not get unconditional access of uranium fuel or technology. In particular, all cooperation will be stopped should India test another nuclear weapon.
- The US President must report annually on India’s nuclear program. Such reporting can, and probably will, be used to pressure India on other fronts.
By buying into US nuclear cooperation, India will in the future have to choose between that cooperation and other alliances. When our mutual interests collide, as they must, India will be playing what is known in game theory as a game of chicken. Where India has really lost is in signaling that this nuclear cooperation is sacrosanct, and our other considerations are up for negotiation.
The truth is that the Act offers India substantial present benefits. The associated losses are in the future, and the extent of those losses will depend on India’s willingness to take choices that are painful in the short term.
Reference
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