Modi, Trump commit to US-India partnership

Friday, 14 February 2025

In a joint statement issued during the official visit to the USA by Prime Minister Narendra Modi, the two leaders agreed that energy security was fundamental to economic growth, social well-being and technical innovation in both countries and "re-committed to the US-India Energy Security Partnership, including in oil, gas, and civil nuclear energy".

The joint statement paid particular attention to the two countries' view of the importance of hydrocarbons, and enhancing production "to ensure better global energy prices and secure affordable and reliable energy access for their citizens" as well as the value of strategic petroleum reserves "to preserve economic stability during crises". They also said they would increase energy trade, and "establish the United States as a leading supplier of crude oil and petroleum products and liquified natural gas to India".

Turning to nuclear, they "announced their commitment to fully realise the US-India 123 Civil Nuclear Agreement by moving forward with plans to work together to build US-designed nuclear reactors in India through large scale localisation and possible technology transfer".

Bilateral nuclear cooperation agreements, specified under Section 123 of the US Atomic Energy Act, are a prerequisite for the transfer of nuclear energy-related materials and components between the USA and another country. The USA and India signed such a 123 Agreement in 2008, after India - which is not a signatory of the international Nuclear Non-proliferation Treaty - reached a safeguards agreement with the International Atomic Energy Agency. But although US-designed reactors have long been earmarked for potential construction in India - Kovvada, in Andhra Pradesh, was identified as a site for six AP1000 pressurised water reactors as long ago as 2016 - contractual arrangements remain to be finalised.

In January - in the final days of the Biden administration - National Security Advisor Jake Sullivan said the USA was getting close to removing long-standing regulations that have prevented civil nuclear cooperation between Indian nuclear entities and US companies. Since then, the Indian government has announced that it will amend both its Atomic Energy Act, which had precluded private-sector investment in India's civil nuclear industry, and the Civil Liability for Nuclear Damage Act, which has been a stumbling block for overseas nuclear power plant vendors as it gave plant operators unlimited legal recourse to the reactor supplier in the event of a nuclear accident.

President Trump and Prime Minister Modi said they welcomed the recent announcement of the amendments and "further decided to establish bilateral arrangements in accordance with CLNDA, that would address the issue of civil liability and facilitate the collaboration of Indian and US industry in the production and deployment of nuclear reactors. This path forward will unlock plans to build large US-designed reactors and enable collaboration to develop, deploy and scale up nuclear power generation with advanced small modular reactors".

They also announced a raft of technology and innovation initiatives, including the US-India TRUST (Transforming the Relationship Utilising Strategic Technology) initiative to catalyse collaboration to promote the application of critical and emerging technologies in areas including defence, artificial intelligence, semiconductors, quantum, biotechnology, energy and space, "while encouraging the use of verified technology vendors and ensuring sensitive technologies are protected".

MAGA-MIGA-MEGA
 

Modi also coined a new phrase to describe India's development vision as the two leaders addressed the media following their meeting in the Oval Office.

"Americans are familiar with President Trump's motto, Make America Great Again, or 'MAGA'," Modi said. "The people of India are also moving towards development at a fast pace with the determination of 'Viksit Bharat 2047' on the track of heritage and development.

"If I say in the language of America, developed India means Make India Great Again, ie "MIGA". When the United States and India work together, ie 'MAGA' plus 'MIGA', the 'MEGA' Partnership for prosperity is formed. And this mega spirit gives new scale and scope to our goals."

Modi's words were reported by the Press Trust of India.

India aims to develop at least 100 GW of nuclear energy by 2047 for its energy transition efforts and has committed to partner with the private sector on the development of the Bharat Small Modular Reactor, a compact 220 MW pressurised heavy water reactor based on India's reactor technology.

Earlier in the week, Modi and French President Emmanuel Macron agreed a Declaration of Intent for establishing a partnership on advanced modular reactors and small modular reactors.