Explained: Why Modi said producing nuclear energy remains a challenge

New Delhi, Sep 26: Prime Minister Narendra Modi seemed to rekindle India's bid for Nuclear Suppliers Group (NSG) membership during a Q&A session at the Bloomberg Global Business Forum in New York on Thursday. Modi made a strong pitch for India's NSG membership and said if India gets the necessary fuel supply for producing nuclear energy, then the country could be a model in this area for the rest of the world.

Except for China, all the other permanent members of the United Nations Security Council (also called P-5) support India's bid for admission to the Nuclear Suppliers Group (NSG), an elite club of 48 countries that regulate trade of nuclear technology. It was established to stop civilian nuclear trade from being used for military purpose.

India has been mounting a strong bid for admission to the Nuclear Suppliers Group (NSG). Ever since India applied for the membership of the NSG in May 2016, China has been insisting that only those countries which have signed the NPT should be allowed to enter the organisation which is a 48-member grouping that regulates the global nuclear commerce.

India and Pakistan are not signatories of the NPT. After India's application, Pakistan too applied for the NSG membership in 2016. China has opposed India's bid to get an NSG membership saying India was yet to sign the NPT. Moreover, it is also trying to get Pakistan entry into the club.

India had got a one-time waiver from the NSG to source power from non-fossil sources. India does enjoy significant possibilities after the 2008 NSG waiver, which enable it to engage in civilian nuclear trade with other countries. It has also been a matter of great pride for the country to have entered into such agreements with countries like Russia, France, UK, USA, Kazakhstan, Australia, and others.

MTCR:

The NSG is the only major export control regime India is not part of after its entry into the Australia Group (January 2018), the Missile Technology Control Regime (June 2016) and the Wassenaar Arrangement (December 2017). India became a Member of the Missile Technology Control Regime (MTCR) on 7 June 2016. All 34 members of MTCR are members of the NSG. India is hence assured of the support of these 34 members in its quest for NSG membership. It may be noted that China is not a member of MTCR, although it put in its application in 2004 because several members have concerns about China's dubious proliferation record in supplying missile technology to countries like Pakistan, Iran and North Korea.

How will NSG membership help India:

India had got a one-time waiver from the NSG to source power from non-fossil sources. However, India needs more energy and as per the calculations it needs to source 40 per cent of power from non-fossil sources. With an entry into the NSG, India can continue to avail the best technology for nuclear energy without seeking waivers. India would also be in a stronger position to implement its plan of building reactors and selling it outside if it becomes part of the NSG. Once India is part of the NSG it would also have access to technology in the defence, space and nuclear sector.

India does enjoy significant possibilities after the 2008 NSG waiver, which enable it to engage in civilian nuclear trade with other countries. It has also been a matter of great pride for the country to have entered into such agreements with countries like Russia, France, UK, USA, Kazakhstan, Australia, and others.

A membership to the NSG would also help firms in India expand business. The nuclear industry in India would no longer have to work in isolation and will have to cater to international norms. This would mean a better market presence worldwide.