On January 7, 2025, U.S. National Security Advisor Jake Sullivan announced in New Delhi that the United States has begun the process of lifting old restrictions on Indian nuclear institutions. This initiative aims to strengthen energy relations with India and revitalize a historic nuclear agreement established 20 years ago.
Sullivan stated that the U.S. is working to remove regulations that have hindered civilian nuclear cooperation between India and American companies. He indicated that these formalities would be completed soon, potentially opening new opportunities in the nuclear energy sector for both nations.
Discussions regarding the supply of U.S. nuclear reactors to India have been ongoing since the mid-2000s, following a 2007 agreement signed by then-President George W. Bush, which allowed the sale of U.S. civilian nuclear technology to India. However, challenges have arisen, particularly concerning India's nuclear liability laws, which differ from international standards.
Typically, the responsibility for a nuclear accident falls to the operating company globally, but India's stringent regulations have complicated agreements with foreign suppliers. Consequently, India's goal of achieving 20,000 megawatts of nuclear power generation by 2020 has been postponed to 2030.
Following nuclear tests in 1998, the U.S. Commerce Department imposed several restrictions on Indian institutions. While many of these restrictions have been lifted over time, some Indian reactors and departments remain on the list. Sullivan's remarks suggest serious efforts are underway to remove these remaining restrictions.
This visit is part of a broader focus on strengthening strategic cooperation between the U.S. and India, particularly in defense, space, and artificial intelligence sectors. In 2022, both countries initiated a technical partnership aimed at collaborating in semiconductor production and AI development, which has already led to agreements such as the one between General Electric and Hindustan Aeronautics Limited for jet engine production in India.
Sullivan's trip is seen as a significant visit by the Biden administration to India, emphasizing the central role of the U.S.-India partnership in regional and global priorities. He met with Indian National Security Advisor Ajit Doval and External Affairs Minister S. Jaishankar during his visit.
Despite some tensions in bilateral relations, including allegations against an official of the Modi government related to the assassination of a Sikh activist in New York, these incidents have not significantly impacted the overall relationship. The potential lifting of nuclear trade restrictions could lead to substantial advancements in India's energy sector, with both countries having previously agreed to establish six U.S. nuclear power plants in India in 2019.
Given the rising energy demand in India, leveraging nuclear energy through international partnerships is crucial. India’s nuclear energy sector has faced challenges due to strict laws and regulations, but this move could provide new direction and enhance cooperation not only in energy but also in technology, defense, and global security.
Sullivan remarked, 'By overcoming these obstacles, we can leave past disputes behind.' This step signals the beginning of a new era for both countries.