The United States has removed three Indian nuclear entities—Bhabha Atomic Research Centre (BARC), Indira Gandhi Atomic Research Centre, and Indian Renewable Earths Limited—from the US Entity List. The decision is a significant step towards advancing the Indo-US nuclear deal and strengthening bilateral strategic ties.
Nuclear agreements and US sanctions
- Nuclear agreements serve as frameworks for cooperation in peaceful nuclear energy development between two or more countries, while addressing concerns related to nuclear proliferation.
Key elements of nuclear agreements
- Civil nuclear cooperation: These agreements allow the exchange of technology, fuel, and expertise for peaceful uses of nuclear energy, such as power generation and medical applications.
- Nonproliferation goal: This is an important aspect that ensures that nuclear technology and materials are not used for weapons development. This is in line with international treaties such as the Nuclear Non-Proliferation Treaty (NPT).
- Nature of US sanctions: To maintain compliance with global frameworks such as the NPT, the United States imposes restrictions on the transfer of nuclear materials and technology. These restrictions are meant to prevent the misuse of nuclear resources.
- US Entity List: This is a list that includes foreign individuals, businesses, research institutions, and organizations that are identified as threats to US national security or foreign policy.
- Decision-making authority: The End-User Review Committee (ERC) decides whether to add, remove, or modify these entities. The ERC includes representatives from the ministries of Commerce, State, Defense, Energy, and sometimes the Treasury.
- Compiler: This list is compiled by the Bureau of Industry and Security (BIS) under the US Department of Commerce.
Purpose of the list
- Prevent unauthorized trade: Prevents the export of technologies and services that may harm US interests.
- National Security: Limits access to sensitive elements that could be used in support of terrorism or weapons of mass destruction (WMD) programs.
- Protecting Foreign Policy: Places sanctions on entities that engage in activities contrary to U.S. foreign policy objectives.
Importance of easing US sanctions
The move to ease US sanctions points to a broader agenda, aimed at achieving strategic, geopolitical and economic goals. The decision strengthens partnerships and addresses global concerns.
Let us understand why it is important:
- Strengthening strategic partnerships: The move is taken to promote mutual trust and shared goals with allies and partner countries. India-US cooperation plays a key role in ensuring security of critical technologies and robust supply chains, especially in areas such as semi-conductors and clean energy.
- Countering global rivals: The move is to limit the influence of countries like China and Russia, which play a key role in the global nuclear trade. The move ensures that advanced technologies are not misused, such as Russia’s S-400 air defense system.
- Securing critical supply chains: One of the key objectives is to enhance critical minerals and clean energy supply chains, as both countries face growing demand for renewable energy technologies.
- Promoting energy security: Nuclear energy is considered a clean and reliable alternative to fossil fuels, which is essential to reduce carbon emissions. This partnership helps countries move towards a carbon-low economy, thereby tackling climate change.
- Economic opportunities: India’s growing role in global manufacturing, with more than 25% of iPhones being produced in India, highlights the economic potential of this partnership. This decision promotes job creation and export growth in high-tech industries. The US aims to promote close cooperation with India in the areas of joint research and development and exchange of science and technology.
India-US Civil Nuclear Agreement
- The India-US Civil Nuclear Agreement (also known as the 123 Agreement), signed in 2008, marked a significant shift in the relationship between India and the US.
- The agreement gave India access to civil nuclear technology and fuel, thereby strengthening the strategic relationship between the two countries.
Key aspects of the agreement
- Nuclear fuel and technology: India gained access to nuclear reactors, fuel and civil nuclear technology.
- Safeguards: India pledged to separate its civil and military nuclear programmes and place several reactors under IAEA (International Atomic Energy Agency) safeguards.
- Nuclear trade: The US lifted the moratorium on nuclear trade with India, making cooperation in nuclear energy possible.
- Nuclear cooperation: The agreement gave the US an opportunity to help India develop its civil nuclear energy programme.
- Energy Security and Sustainability: Under the agreement, India will meet its growing energy needs and reduce its dependence on fossil fuels.