U.S.-India Nuclear Deal

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The U.S.-India civil nuclear deal has yet to fulfill its full potential due to legal, technical, and liability challenges.

The U.S.-India nuclear deal, finalized in 2008, was a transformative agreement aimed at fostering defense and strategic cooperation between the two democracies. It envisioned India’s access to nuclear technology, fuel, and expertise for expanding clean energy capacity. Despite its promise, several economic and commercial objectives remain unfulfilled. U.S. companies face challenges, including liability laws, the “Entity List,” and legal barriers that hinder investments and technology transfer.

The U.S. Liability Act of 2010 has been a significant obstacle, holding suppliers accountable for nuclear accidents, a provision deterring private companies. Furthermore, dual-use technologies are diverted to defense-related control systems, raising security concerns and limiting trade. Only a few nuclear power plants were proposed by U.S. firms like Westinghouse but remain stalled due to unresolved legalities and cost disputes.

The Biden administration has removed some barriers, but challenges persist. Russia’s involvement in India’s civil nuclear projects adds complexity, as U.S. suppliers demand equal security guarantees. Additionally, Indian nuclear expansion policies have not aligned fully with international standards, further delaying progress. Resolving liability concerns and providing advanced technology at competitive prices are key to unlocking the potential of this deal, which could significantly benefit clean energy, defense, and economic growth for both nations. Achieving these goals requires pragmatic policy reforms and deeper bilateral collaboration.