The 123 Agreement, popularly known as the India-U.S. Civil Nuclear Agreement, was a strategic agreement between India and the United States in 2008. It marked a critical turn in international diplomacy and nuclear cooperation, allowing India access to nuclear technology and fuel from the global market, even though it was not a signatory to the Nuclear Non-Proliferation Treaty (NPT). This deal proved vital for India’s energy security, technological advancement, and prestige globally. Behind this agreement lay the late Dr Manmohan Singh, then India’s Prime Minister, who, by his vision and conviction, made the country cross all possible obstacles, be it domestic or international, to make it possible.
The Genesis of the Deal
Since India opened its economy in 1991, the economy has started booming, and industries and towns need energy for that. India was dependent on fossil fuels for the required energy, but the dependency was neither feasible nor environmentally friendly. The long-suffering from an energy deficit and its dependence on fossil fuels were major causes of environmental and economic threats. Nuclear energy was considered an environment-friendly alternative to fulfil the growing demands of the economy and the population. However, India’s nuclear tests in 1974 and 1998 resulted in international sanctions, which isolated India from global nuclear trade. The 123 Agreement sought to lift this isolation, and it would let India import nuclear technology and fuel for civilian purposes while adhering to certain safeguards under the International Atomic Energy Agency (IAEA).
The deal was named after Section 123 of the US Atomic Energy Act, which governs nuclear cooperation agreements with other nations. For India, it was not merely a deal to resolve energy issues but also a strategic partnership with the US, enhancing its global standing.
Manmohan Singh’s Vision and Determination
Late Dr Manmohan Singh, known for his quiet demeanour but astute economic and strategic insight, championed the deal. He believed the agreement was essential for India’s energy security. It would signal the nation’s arrival as a responsible global power. Singh knew that India could only grow economically when India had sufficient energy resources. Nuclear power was crucial to bring clean energy and to reduce reliance on oil and coal.
Singh’s vision was not limited to energy needs. This deal was a declaration of intent by India to join the world order as an equal participant, and thus, marked a strategic alignment with the US While it was contentious for those who fear the influence of the U.S., Singh said that this agreement preserved India’s independence in strategic and military nuclear development. The vision that the late Singh has shown looks on the horizon, and India’s relationship with the US has grown since then. The cooperation would not have been possible without the foundational stone that was put in place by Dr Singh.
Domestic Challenges and Political Fallout
Domestically, the deal faced stiff opposition. The Left parties, which supported Singh’s coalition government from the outside, strongly opposed it, viewing the agreement as a compromise of India’s sovereignty and a shift towards US hegemony. They argued that India would become overly dependent on the US and that the deal would restrict India’s independent nuclear weapons program.
Interestingly, these left parties had no issues when India was dependent on USSR, later Russia, for security and defence equipment. The left parties in July 2008, withdrew their support, leaving Singh’s government in a precarious position. A vote of confidence in Parliament became inevitable. Politically, the climate was charged, and opposition parties, especially the left, accused the government of compromising national interests. However, it was left which compromised the national interest by opposing a civil nuclear deal that was much needed for India.
Former Foreign Secretary Vijay Gokhale has written in his book The Long Game: How the Chinese Negotiate with India (Penguin Random House India) that China had used its “close connections” with Left parties in India to “build domestic opposition” to the Indo-US nuclear deal between 2007 and 2008. Gokhale was Joint Secretary (East Asia) during 2007-09 and was dealing with China in the Ministry of External Affairs. Hence, it was the left who compromised India’s sovereignty and national interest by listing to China.
Manmohan Singh’s Leadership in Crisis
Despite the risk of losing power, he didn’t back away from the deal, being convinced that it was in India’s long-term interest. His leadership was characterized in this period as quiet resilience and a singular focus on the larger cause. He spoke to India’s sense of progress and energy needs, thus arguing that this deal was one of India’s developments rather than an appeasement act towards a foreign power. He personally started talking to other parties in Parliament and making them understand the benefits and necessity of the deal for India.
Support from the Samajwadi Party
In a dramatic political development, the Samajwadi Party (SP), led by Mulayam Singh Yadav and Amar Singh, decided to back the government. The SP support was important for the government to get the numbers in the confidence vote. It was speculated that the decision to back the government was driven by SP’s fear of legal actions against its leaders, Mulayam Singh Yadav and Amar Singh, by central investigating agencies. Additionally, the SP sought protection from political adversary Mayawati, whose Bahujan Samaj Party (BSP) was gaining ground in Uttar Pradesh. The SP’s move was seen as an attempt to prevent the BSP from dominating the upcoming Lok Sabha elections and to secure the central government’s backing against Mayawati’s attacks.
The SP’s support proved to be a lifeline, which helped Singh’s government survive the confidence vote on a very thin margin of victory. The incident not only saved the government, but it also saved the nuclear deal. Otherwise, India would be on an entirely different path.
Role of BJP
The BJP adopted a cautious and strategic stance on the U.S.-India Civil Nuclear Deal during the UPA government, highlighting its commitment to safeguarding India’s sovereignty and national interests. While acknowledging the potential benefits of the deal for India’s energy security and global standing, BJP leaders like L.K. Advani and Yashwant Sinha raised concerns about its implications. They argued that bringing civilian facilities under IAEA safeguards could impact India’s military nuclear program and that reliance on the U.S., particularly under the Hyde Act, might compromise India’s independence. The BJP emphasized the importance of maintaining a robust, independent foreign policy and protecting national sovereignty.
Challenges in the International Arena
The deal also faced significant challenges at the international level. The US Congress had to amend its domestic laws to accommodate the agreement with a non-NPT country. In addition, the Nuclear Suppliers Group, a consortium of nuclear-exporting countries, had to grant India an unprecedented waiver to engage in civilian nuclear trade.
Then, the US President, George W. Bush, was also one of the key players who pushed the deal forward. The deal was opposed by countries like China and a few European nations, who feared it would set a precedent for non-NPT countries, due to strong diplomacy, which included Singh’s outreach to world leaders and India’s commitment to non-proliferation, at last secured the necessary approvals.
Impact and Legacy
The civil nuclear agreement between India and the US changed India’s entire energy and diplomatic scenario. It not only ended decades of nuclear isolation but also allowed India to sign similar deals with countries like France, Russia, and Japan. The treaty underlined that India emerged as a major power in world politics. The deal secured strategic partners while retaining freedom.
This deal was one of the definitive movements of his prime ministerial ship. This was one of the rare occasions when the late Prime Minister demonstrated courage and broke free from the constraints of being a silent follower of a dynastic family. His perseverance with the deal, no matter how high the risk to his government, showed how he could make national interest more important than political expediency.
