The US Entity Listprevent unauthorized trade in items that could support terrorism, weapons of mass destruction (WMD) programs,
- Removal of Indian entities from the list s could potentially revitalizing the Indo-US Nuclear Cooperation Agreement of 2008.
Indo-US Nuclear Cooperation Agreement
- Background:
- The 123 Agreement, named after Section 123 of the US Atomic Energy Act 1954, was introduced in July 2005
- It ended a 30-year US ban on nuclear trade with India, imposed after nuclear weapons tests and subsequent sanctions.
- Cooperation for India’s programme: Enables US businesses to sell nuclear fuel, technology, and reactors to India.
- India’s commitment: India agreed to expand international safeguards, adhere to international nuclear and missile export guidelines, continue its voluntary moratorium on nuclear testing, etc.
Significance of the deal
- Acknowledges India's strong non-proliferation record and its history of implementing voluntary safeguards on its nuclear program.
- Encourages India to accept international safeguards on previously uninspected facilities.
- Recognizes India's commitment to following Nuclear Suppliers Group (NSG) export standards, despite not being a formal member.
- India is a member of other multilateral weapon and technology export control regimes which include Missile Technology Control Regime, Australia Group, and Wassenaar Arrangement.
Key Implementation Challenge
- India's nuclear liability: India's 2010 Civil Liability for Nuclear Damage Act (CLNDA) that ensures compensation for nuclear disaster victims created tensions with US suppliers.
- Non-NPT Membership: Concerns over India not signing the Nuclear Non-Proliferation Treaty (NPT) hinder progress.