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India rejoices Nuclear deal with NSG waiver – the wave of reverse outsourcing starts
Harish Blaiga
Sep. 6, 2008

You must be thinking what is reverse outsourcing? Well the concept is simple. India now starts outsourcing nuclear reactors, expertise, and fuel from the United States.

The actual fun starts now. America is thinking India will buy reactors from Westinghouse, GE, and other American companies. Close $100 billion will come back to US that Americans sent to get software work done with cheap Indian labor.

Indian politicians have other plans. They already have in place plans to buy these reactors slowly from Russia and France. America will get some orders, perhaps to the tune of $10 billion.

That will make the US Administration very unhappy!

The NSG waiver is noteworthy. What India needed was a waiver from the NSG to engage in nuclear commerce without signing the Nuclear non-Proliferation treaty (NPT). However, against the background of illegal sale of nuclear technology to countries like DPR Korea, at least three countries said they needed many more assurances from India that it would never conduct a nuclear test again. These countries also wanted assurances that India would not pass on uranium enrichment technologies to other non-signatories of NPT.

Ireland and Austria demanded India amend the draft. Yesterday, Foreign Minister Pranab Mukherjee issued a covering statement (full text on Page 12), which spelt out and emphasized India’s voluntary moratorium on testing. However, he said nowhere that India would not test again. Chairman of the Atomic Energy Board, Anil Kakodkar, repeated this. Mukherjee also stressed India’s commitment to non-proliferation but added that as NPT was discriminatory, India would not sign it.

This testament of India’s nuclear doctrine appears to have been accepted as India’s commitment to non-proliferation. Achieving this cannot have been easy because, as India is not a member of NSG, it was the United States that was doing the heavy lifting for New Delhi.


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