Context:
The United States, through its National Defense Authorization Act (NDAA), 2026, has reiterated the need for India to align its nuclear liability framework with global norms, in the backdrop of India’s Parliament clearing the SHANTI Bill. The development has revived debates around nuclear sovereignty, supplier liability, private participation, and strategic autonomy.
Key Highlights:
U.S. Legislative Signal – NDAA 2026:
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The U.S. President signed the NDAA, 2026, an annual law governing defence spending and strategic assessments.
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The Act advises:
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Review of the implementation of the 2008 Indo–U.S. Civil Nuclear Deal.
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Encouragement for India to align nuclear liability rules with international standards.
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Reflects U.S. interest in expanding commercial nuclear cooperation with India.
India’s SHANTI Bill – Policy Shift:
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India recently cleared the SHANTI Bill, enabling:
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Private sector participation in nuclear power generation
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Foreign investment in nuclear projects
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Operator liability capped at ₹3,000 crore, bringing India closer to global liability regimes.
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The Bill repeals and replaces existing nuclear liability-related provisions, restructuring India’s nuclear governance framework.
Supplier Liability Controversy:
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The SHANTI Bill removes the explicit linkage to supplier liability, a clause that had earlier deterred foreign vendors.
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Supplier liability was a unique feature of India’s nuclear liability law, introduced after Bhopal gas tragedy concerns.
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Opposition parties argue:
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The Bill favours foreign suppliers and vendors.
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Weakens accountability in case of nuclear accidents.
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Aligns excessively with U.S. commercial and strategic interests.
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International Nuclear Liability Framework:
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Key global conventions include:
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Vienna Convention on Civil Liability for Nuclear Damage
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Convention on Supplementary Compensation (CSC) for Nuclear Damage
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These frameworks primarily place liability on the operator, limiting supplier exposure.
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The SHANTI Bill aligns India closer to these conventions.
Strategic & Economic Dimensions:
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The 2008 Indo–U.S. Nuclear Deal sought to:
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End India’s nuclear isolation
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Enable technology transfer and nuclear fuel access
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Integrate India into the global nuclear order
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Alignment of liability norms is seen as critical for unlocking large-scale nuclear investments.
Relevant Prelims Points:
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Issue: Alignment of India’s nuclear liability norms with global standards.
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Key Developments:
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NDAA 2026 (U.S.)
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SHANTI Bill (India)
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Core Concepts:
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Nuclear liability
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Supplier liability
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Impact:
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Increased scope for foreign participation
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Renewed debate on nuclear accountability
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Relevant Mains Points:
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Facts & Provisions:
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NDAA: Annual U.S. law on defence expenditure and strategic direction.
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SHANTI Bill: Enables private participation and caps operator liability.
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Keywords & Conceptual Clarity:
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Nuclear Sovereignty, Civil Nuclear Cooperation, Risk Allocation, Strategic Autonomy
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Governance & IR Perspective:
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Balancing investor confidence with public safety.
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Managing external pressure while safeguarding national interest.
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Way Forward:
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Ensure robust regulatory oversight and safety standards
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Maintain transparency in nuclear governance
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Balance global integration with constitutional and ethical accountability
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UPSC Relevance (GS-wise):
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GS 2: India–U.S. relations, global governance, strategic partnerships
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GS 3: Nuclear energy, investment climate, economic policy
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Prelims: Nuclear conventions, NDAA, Indo–U.S. nuclear deal