India, which has not signed the nuclear Nonproliferation Treaty and does not have International
Atomic Energy Agency safeguards on all of its nuclear material, exploded a “peaceful” nuclear
device in 1974,
Although Assistant Secretary of State Robert Blake stated November 15, 2010, that “U.S. firms
have already begun negotiations with their Indian counterparts,” U.S. firms may be reluctant to
engage in nuclear trade with India if the government does not resolve concerns regarding its
policies on liability for nuclear reactor operators and suppliers.7 India signed the Convention on
Supplementary Compensation for Nuclear Damage (CSC), which has not yet entered into force,
October 27, 2010. In 2008, the State Department described India’s decision to “become a party”
to the convention as “an important step in ensuring that U.S. nuclear firms can compete on a level
playing field with other international competitors” because many other countries’ nuclear firms
“have other liability protections afforded to them by their governments.”8 However, as discussed
below, Russia and China are also discussing with India means of resolving their concerns about
the liability issue.
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U.S. & India agree on non-military nuclear co-operation
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