India-Japan civil nuclear deal

India-Japan civil nuclear deal

India-Japan nuclear cooperation is a milestone in further strengthening their bilateral ties. This deal was signed in November last year by Prime Minister Narendra Modi’s visit to Sri Lanka. It is practical today. Indian Foreign Secretary S. Jayashankar and Japan Ambassador Kenji Hiramatsi in India have entered into force on July 20.

Prime Minister Modi described this deal more than a commercial and clean energy deal. It is a new, glittering symbol of trust and strategic partnership for a peaceful and secure world. After signing the agreement in Tokyo, Modi said that both countries made major improvements in economic cooperation and regional partnership and defence cooperation. Meanwhile, Japan Prime Minister, Shinzo Abe, said that Japan and India had taken their relationship to a new level.

This agreement was in effect for a period of two months before the visit of Mr. Abe to India this September. A meeting was held between Prime Minister Modi and Abe as the interim work of the G20 summit in Hamburg on July 2016. The high-speed bullet train project that connects Ahmedabad to Mumbai was the trigger to launch the upcoming Japanese leader’s visit.

The agreement was signed to empower Japan’s nuclear power plant export. After the nuclear test in India in 1974 and in 1998, many of the nuclear supply teams, including the United States, France, Russia, Britain and China, now wish to deal with India in the nuclear sector, and in 2008 they were part of the Nuclear Supply Group.

Japan understood the laws of the country.

So, in 2010, Japan began direct negotiations with India, and last November, the civil nuclear cooperation agreement was signed. Japan is keen not only to develop nuclear co-operation. It also favours collaboration in other areas. As a result, Japan is India’s third large FDI.

As a matter of fact, India has also signed a nuclear co-operation agreement with the United States.

Will the deal with Japan be similar to the US? Of course not;

Five years after the 2011 Fukushima disaster, Japan signed this deal, and is previously committed to security. The agreement recognizes claims made by India in September 2008 to the nuclear supply group and includes several improvements including the International Atomic Energy Agency.

In the end, how will India benefit from this agreement? First, not only the cooperation between the Japanese and Indian industries in the field of nuclear power, but also American and French companies that are doing business with Japanese companies will also come up with to build nuclear power plants in India. Secondly, Indian companies and their partners will establish nuclear power plants in third countries. Thirdly, it will strengthen the “Made in India” trend because it will foster the localization of nuclear equipment and services.

About Author

Arnaud Lefevre

Arnaud Lefevre is the Chief Executive Officer of Dynatom International. Arnaud is in charge of the international development of the business portfolio.