‘India–Canada Uranium Deal Possible Because of 2008 Pact with U.S.’

Context:
The Congress party stated that India’s reported progress toward finalising a uranium supply deal with Canada is possible due to the 2008 India–U.S. Civil Nuclear Agreement, which enabled India’s integration into global nuclear commerce.

Key Highlights

Congress’s Statement

  • Congress leader Jairam Ramesh asserted that the current deal is a consequence of the India–U.S. nuclear pact signed under former PM Manmohan Singh.
  • He argued that the 2008 agreement opened doors for India to engage in nuclear trade with multiple countries, including Canada.

Significance of the 2008 Pact

  • The nuclear agreement ended India’s isolation from global atomic trade despite not being a signatory to the Nuclear Non-Proliferation Treaty (NPT).
  • The U.S. supported India’s waiver at the Nuclear Suppliers Group (NSG), permitting civilian nuclear cooperation.

Current Diplomatic Progress

  • Reports suggest India and Canada are close to finalising:
    • A $2.8 billion deal for long-term uranium supply.
    • Cooperation across areas including energy, defence, space, and technology.
  • Momentum follows a meeting between PM Narendra Modi and Canadian Prime Minister Mark Carney on the sidelines of the G20 Summit in Johannesburg.

Relevant Prelims Points

  • India–U.S. Civil Nuclear Deal (2008):
    • Also known as the 123 Agreement
    • Enabled nuclear fuel imports and civilian reactor cooperation.
  • NSG Waiver (2008):
    • Allowed India to engage in civilian nuclear trade despite being outside NPT.
  • Uranium Suppliers to India:
    • Canada, Kazakhstan, Australia (under civil nuclear pact), Russia.
  • India’s Nuclear Framework:
    • Regulatory oversight by Atomic Energy Regulatory Board (AERB).
    • Executed through Department of Atomic Energy (DAE) and NPCIL.

Relevant Mains Points

  • Energy Security Implications
    • Uranium imports support India’s growing civilian nuclear power programme.
    • Reduces dependence on fossil fuels; aligns with climate commitments.
  • Diplomatic Significance
    • The deal strengthens Indo–Canadian ties following strained relations over political tensions.
    • Reflects India’s rising role in global strategic frameworks.
  • Strategic Fallout of the 2008 Pact
    • Impact on India’s foreign policy orientation toward the U.S.-led order.
    • Opened opportunities for high-technology access beyond nuclear sector (defence, space, R&D).

Way Forward

  • Diversify uranium suppliers to avoid supply shocks.
  • Accelerate domestic reactor development including:
    • Indigenous PHWRs (Pressurised Heavy Water Reactors)
    • Fast Breeder Reactor (FBR) pipeline
    • Thorium-based reactors (long-term strategy)
  • Balance diplomacy between Western partners and non-aligned nuclear stakeholders.

UPSC Relevance:

  • GS-II: International Relations, India–US Relations, Strategic Diplomacy
  • GS-III: Energy Security, Nuclear Technology, Climate Commitments
  • Prelims: Nuclear Deals, NSG, 123 Agreement, Uranium Imports
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