Eric Garcetti, the outgoing US Ambassador to India, emphasized the need for “honest conversations” between India and the United States to advance civil nuclear cooperation and address trade tariffs. His remarks follow the US Bureau of Industry and Security’s decision to remove key Indian atomic entities from an ‘Entity List,’ marking a significant step in strengthening India-US ties.
Deepening Civil Nuclear Cooperation
On January 6, US National Security Advisor Jake Sullivan announced that restrictions preventing collaboration between Indian nuclear entities and American companies under the 2005 civil nuclear deal would be lifted. This includes removing Indian Rare Earths, the Indira Gandhi Atomic Research Center (IGCAR), and the Bhabha Atomic Research Center (BARC) from the ‘Entity List.’
Garcetti highlighted the strategic importance of the move, stating, “The US and India must work together to meet India’s energy needs while mitigating climate change. Without such collaboration, nations like China will dominate nuclear technology advancements.” He described the relationship as “indispensable” and expressed confidence that the progress in civil nuclear cooperation would continue under the new US administration.
Challenges in Nuclear Liability Laws
Garcetti acknowledged that India’s Civil Liability for Nuclear Damage Act of 2010 remains a hurdle in advancing nuclear projects. The law, which imposes liability on suppliers in addition to operators, has deterred foreign participation in nuclear projects.
“Addressing this liability clause is crucial for fostering deeper collaboration. Both the ruling BJP and the opposition agree that a balanced approach can enable progress,” Garcetti noted. He added that Prime Minister Narendra Modi and US President Joe Biden had discussed this issue and expressed a commitment to finding a solution that ensures shared responsibility.
Tariff Barriers and Trade Relations
Garcetti also backed US President-elect Donald Trump’s call for reducing India’s high tariff rates, labeling India as the “highest tariff major economy.” He stressed the importance of creating fair trade conditions to strengthen bilateral economic ties.
“President Trump’s words should elevate the conversation. We’ve resolved past trade disputes, setting the stage for greater opportunities. However, we must take bold steps to reduce our overdependence on China for critical supply chains,” he said.
Advancing Critical and Emerging Technologies
Garcetti highlighted the India-US Initiative on Critical and Emerging Technology (iCET) as a cornerstone of bilateral relations. Despite criticisms of its pace, he pointed to record semiconductor investments from US firms in India and the development of telecommunication systems free from Chinese equipment.
“The iCET didn’t exist two years ago, and it has already achieved significant milestones. I believe it will become a permanent part of our relationship, with continued progress under the new administration,” he remarked.
A Vision for the Future
As he prepares to step down, Garcetti expressed optimism about the future of India-US relations. He emphasized the need for both countries to adopt a pragmatic approach to resolve challenges in nuclear liability, tariffs, and critical technologies.
“India and the US have the opportunity to create an unparalleled partnership. By addressing these key issues, we can strengthen our cooperation in areas ranging from civil nuclear energy to artificial intelligence,” he concluded.
Conclusion
The recent developments underscore the potential of India-US collaboration in energy, trade, and technology. However, achieving this vision requires both nations to tackle existing barriers with determination and foresight. With strong leadership on both sides, the stage is set for a deeper, more dynamic partnership.
Stay updated on this evolving story for insights into India-US relations and their global impact.
