As soon as the deal got approved we are seeing very strong reaction coming from both left and right within India. BJP has termed the bill “humiliating” (1) while the left is saying that US law was “unacceptable” (2). This essay tries to analyze the truth behind this deal.

As is true with in any deal, both the parties are trying to extract maximum advantage. And the advantage usually goes to the strongest party involved in this deal. The strongest party in this case happens to be US. Let’s see what could be the possible motives for the US to make a special one-country-specific agreement.

US Motives
1. Political clout in the region
2. Making money off of this deal
3. Extracting special considerations from Indian nuclear industry

On the other hand India is set to gain from this deal and possible benefits include:

Indian Motives
1. Closeness with the greatest power
2. Acquisition of the latest nuclear technology
3. Possible addition of Indian companies in the nuclear outsourcing in manufacture and research


From the news today, it is evident that the Indian left and BJP are mostly concerned about the first two motives of US. Here is what BJP is saying:

1. BJP says that the bill will “seriously compromises the independence of our foreign policy” by limiting cooperation with countries like Iran
2. United States was only interested in capping India’s nuclear weapons program
3. [The final version of the ] bill did not deliver full civil nuclear cooperation, imposed “rigorous” assessment obligations, failed to guarantee uninterrupted fuel supplies for civilian reactors and
4. The bill would prevent India from reprocessing spent fuel.
5. It also banned future nuclear tests and rendered the weapons program “subject to intrusive US scrutiny”
6. The deal would constrain India’s military nuclear program by separating it from the civilian side.


The Indian-left so far has made one salient issue against this deal. CPI(M) general secretary Prakash Karat said the US law was unacceptable as it sought to make India’s foreign policy congruent with the US’s on Iran.

It looks like both left and BJP have done their homework and their issues have a lot of weight. PM Manmohan Singh realizes that the deal is important for US-India relationship so he is going full steam ahead in accepting this deal.

The factor that is little known in this whole affair is the role of pro-US lobby in the India. Big groups like NASCOM have a lot of cash, and they want to push India towards US at every cost. They know that all the BPO and other tech contracts are dependent on the good will of US. They are also hoping that closer US ties will also help in receiving more funds with possible outsourcing of nuclear industry and research. These scenarios can certainly help increase the income of Indian companies.

There are certain dangers for both countries in this deal. US will surely use its clout to have greater access to the Indian nuclear program that has so far been hidden from US agencies like CIA. In fact the 1999 nuclear detonations by India came as a surprise for the US intelligence community. US learned a lesson and this deal will be used to monitor Indian activities from up close and from within. US will also push India away from organizations like NAM, and punish India if it ever goes against US dictates regarding Iran or China.

US needs to be mindful of the “independent” streak among Indian intellectuals. That streak can lead to the unintended use of this technology. Case in point is the nuclear cooperation between Nehru and Eisenhower that ultimately helped Indian nuclear weapons program.

Indian policy makers on the other hand must pay heed to the BJP and other nationalists. US policies are exact opposite from the ones held dear by British or later the Soviets. There is no permanent friend or a permanent enemy. US national interest change on a dime leaving behind the trail of empty promises and broken agreements.

In the end this treaty will be really good for US, while bringing a lot of benefits for India. Indians are suffering from lack of electricity. Major nuclear projects will surely help address the shortage of electricity and in the process alleviate the abject poverty. This will be good for India and hence good for the whole region.

(1) http://timesofindia.indiatimes.com/
BJP_flays_US_legislatio n_on_nuke_deal_calls_it_humiliating/articleshow/762463.cms

(2) http://www.hindustantimes.com/news/181_1866000,0008.htm