Links to U.S. official, academic and business viewpoints on US-India relations.

Talking Points about
US-India Civilian Nuclear Cooperation

Prepared by US-India Political Action Committee (USINPAC)
March, 2006

The time has come for you to act now and make a forceful statement in support of the historic transformation in U.S.-India relations. Today, we are witnessing a shift in paradigms, and you can play a critical role at this juncture when the entire world is watching the outcome of the civil nuclear agreement between the U.S. and India. In fact, you can make a once-in-a lifetime difference that will be remembered by generations to come.

President Bush’s visit to India has brought the story of India to the fore of global attention and, together, we can ensure that the 21st century will truly be the century of U.S. and Indian leadership in global affairs. The Indian economy has a real and immediate potential to grow at double digit rates resulting in an improved quality of life if the economy grows at 10-12% annually.

You can be a part of India’s accelerated economic and social development by supporting the civilian nuclear cooperation agreement signed by President Bush and Prime Minister Singh. Only through a strong grassroots effort can we make our voice heard. This is why USINPAC urges you to write to your Representative in the United States Congress and respectfully urge him to support this deal.

-- Great for American Businesses: Civilian nuclear cooperation will create several business opportunities in India for small, medium and large American companies. Two-way, bilateral trade Two-way, bilateral trade between the United States and India has increased by 221% over the past 13 years from 5.6 billion in 1990 to 18.03 billion in 2003 and is expected to grow substantially. The total amount of exports that will be generated by nuclear cooperation alone could amount to upwards of $25 billion over the next few years.

-- Keeping Energy Costs Down for Ordinary Americans: India does not have the domestic energy resources to sustain its rapidly growing economy, and consequently must meet its requirements through foreign energy resources. As India consumes more energy from the world’s static energy supply, the cost for energy for ordinary Americans will increase significantly. Civilian nuclear cooperation is the only option India and the US have to keep energy costs down for ordinary Americans. Currently, nuclear energy only comprises 3% of India’s energy consumption, and this number cannot increase substantially without civilian nuclear cooperation with the United States.

-- India, America’s Strongest Ally in the Region, is on the Verge of Energy Insecurity: India is already the sixth largest energy consumer in the world, but in order to maintain their strong economic growth, India’s energy consumption will need to increase substantially. The facts are staggering, and Civilian nuclear cooperation is the only way India can stay energy secure:

Facts on India’s Energy Crisis:

• India’s rapidly expanding economy requires increasing its energy consumption by an annual rate of 4% in order to maintain an economic growth rate of 6-7%
• India’s oil demand has increased by 100% between 1990 and 2003 and will increase by 100% again within the next 25 years; Over the past decade, India’s oil demand has grown by an annual rate of over 6% and is expected to increase in the near future
• India does not have the domestic oil resources to meet the growing oil demand, as evidenced by India not discovering a new oil reserve domestically since the 1970’s
• Two-thirds of India’s annual oil consumption is imported, and it is projected that India will import over 90% of its annual oil requirements within the next 15 years.
• India’s gas consumption is projected to increase from 0.8 trillion cubic feet (TCF) in 2001 to 2.5 TCF by 2025; increasing at an alarming annual rate of 4.8%
• India will be unable to meet natural gas demands through domestic resources and is projected to import 40% of its natural gas by 2025

-- China’s Goal to Become a Superpower is Aggravating India’s Energy Crisis: China and India are the two major powers in Asia, and China is competing directly with India for regional and global influence. China has been aggressively obtaining foreign energy sources over the past few years as part of a zero-sum strategy regarding India, purposely leaving very few opportunities for India to obtain foreign energy sources. China’s goal is to push India into energy insecurity. The China National Petroleum Corporation (CNPC) has invested $45 billion since 2000 as compared to $3.5 billion by India’s Oil and Natural Gas Commission (ONGC).

-- Civilian Nuclear Cooperation is Great for the World’s Environment: Nuclear energy is a “clean” energy source that does not harm the environment. This is a much better option than energy sources that hurt the environment including oil and coal.

-- India has Agreed to Important Measures that will bring the Country into the Mainstream for Global Non-Proliferation: According to the US Department of State, India has agreed to:

• Place a majority of its existing power reactors and those under construction (14 of 22) under IAEA safeguards, and to place other associated upstream and downstream facilities that support those reactors under safeguards;
• Place all future civilian thermal power and civilian breeder reactors under safeguards;
• Negotiate a safeguards agreement that would place all Indian civilian nuclear facilities under safeguards in perpetuity;
• Permanently shut down the CIRUS reactor in 2010, shift the fuel core of the Apsara reactor purchased from France outside the Bhabha Atomic Research Center and place it under safeguards in 2010;
• Identify and declare nine other research facilities as civilian;
• Negotiate and sign an Additional Protocol with the IAEA;
• Implement through appropriate rules and regulations India’s recent passage of the Weapons of Mass Destruction Act of May 2005, creating a robust national export control system;
• Refrain from transfers of enrichment and reprocessing technologies to states that do not already possess them and support efforts to limit their spread;
• Work with the United States to conclude a multilateral Fissile Material Cutoff Treaty;
• Continue its unilateral moratorium on nuclear testing;
• Adhere to the Missile Technology Control Regime (MTCR) and the Nuclear Suppliers Group (NSG) guidelines.