How India Will Benefit From Japan Nuclear Cooperation Agreement

The stage is set for the signing of the India-Japan nuclear agreement.

According to government sources, the nuclear cooperation agreement will be signed during Prime Minister Narendra Modi's visit to Tokyo for the annual bilateral summit in November. However, an official in the Japanese government said both sides were still labouring on the “technical details of the treaty”.

The Hindu reported, once the agreement is signed by Prime Minister Modi and Japanese Prime Minister Shinzo Abe, the Japanese government will take it to the Diet (Japan's parliament) in “early 2017”.

While India did not agree to sign the Nuclear non-Proliferation Treaty (NPT) and Comprehensive Test Ban Treaty (CTBT), it did issue a unilateral moratorium on testing many years ago. Japanese officials insisted that the deal include a clause that would Tokyo to cut off supplies if New Delhi tests a nuclear weapon.

Part of the report claimed Japan has agreed to India’s demand that it be allowed to reprocess nuclear fuel from Japan, only if New Delhi agrees to inspections by the United Nations nuclear watchdog International Atomic Energy Agency (IAEA).

If the deal is signed, it will boost India’s nuclear power industry as two major US companies (GE and Westinghouse) planning plants in India are owned by Japan. India is also keen on Japanese funding for its clean energy projects, as current reports claim that the plan for the US Export Import Bank to fund six reactors built by Westinghouse in Andhra Pradesh’s Kovvada Nuclear Park is facing liability issues.

Moreover, many officials believe that a deal with Japan would enhance India’s nuclear programme; and in a year New Delhi hopes to join the Nuclear Suppliers Group.