Indo-US nuclear deal

Gist of the developments related to the Indo-US nuclear deal

DECODING THE NUKE JARGON

Nuclear Deal: A nuclear deal, announced in July, 2005 and finalised in March, 2006, would allow the United States to sell nuclear material to India and it may end India’s nuclear isolation. India is self-sufficient in thorium but possesses a meagre 1% of the global uranium reserves. The deal will help India obtaining a steady supply of uranium required for running the present nuclear programme.

123 agreement: Section 123 of the United States Atomic Energy Act of 1954, titled “Cooperation With Other Nations”, establishes an agreement for cooperation as a prerequisite for nuclear deals between the US and any other nation. Such an agreement is called a 123 Agreement.

Hyde Act: Henry J Hyde United States-India Peaceful Atomic Energy Cooperation Act of 2006 is the legal framework for a bilateral pact between the United States and India under which the US will provide access to civil nuclear technology and access to nuclear fuel in exchange for International Atomic Energy Agency-safeguards on civilian Indian reactors.

NPT Signatories: Signatories to the Nuclear Non-Proliferation Treaty (NPT) are granted access to civilian nuclear technology from each other as well as nuclear fuel via the Nuclear Suppliers Groups in exchange for International Atomic Energy Agency-verified compliance of the NPT tenets. India, Israel, and Pakistan, however, have not signed the NPT.

GAINS

• It will help India meet its rising energy demands by reversing US sanctions, imposed after nuclear tests were carried out by India in 1974 and 1998.
• India will get access to US civilian nuclear technology.
• The deal guarantees India fuel supplies for its civilian programme, and allows it to reprocess spent fuel.
• It could spur India’s economic growth as India’s objective is to increase the production of nuclear power generation from its present capacity of 4,000 MW to 20,000 MW in the next decade.
• It could usher in a new era of nuclear power in India, freeing the country from heavy dependence on fossil fuels.

LOSSES

The deal ties India’s future foreign and energy policy closely to the US. India will now classify 14 of its 22 nuclear facilities as being for civilian use, and thus open to inspection.

TIME LINE

July 2005	Prime Minister Singh and US President George W Bush agree to a civilian nuclear co-operation deal.
March 2006	Two countries agree on India’s plan to separate its civilian and military nuclear reactors.
Dec 2006	US Congress approves the deal. Approvals from Nuclear Suppliers Group, International Atomic Energy Agency and a second time by the Congress are still needed.
Dec 2006	Bush signs the law approved by Congress, which makes changes to the US Atomic Energy Act.
July 2007	The two countries announce finalisation of the deal.
Aug 2007	Text of the bilateral pact, called the 123 agreement, is unveiled.
Aug 2007	Left parties slam the pact and ask the government to suspend it saying it compromises India’s sovereignty and imposes US influence.
July 4, 2008	Samajwadi Party with 39 MPs agree to support the UPA on the deal.
July 8, 2008	Left withdraws support to the UPA; Govt approaches IAEA.

India’s education market potential

India’s education market potential

With double digit economic growth demanding a sustained supply of knowledge workers, India has emerged as one of the world’s largest consumer of education services with a target population of more than 445 million (between age group of 5-24 years), which is expected to increase to approximately 486 million by 2025, far exceeding the combined target population in China (354 million) and the US (91 million) in the same year. With public and private spending on education services in India aggregating approximately $100 billion per annum, and private spending on education having grown at a CAGR of 10.38% since 1994 at constant prices (double the 5.11% CAGR for total private consumption spending during the same period at constant prices), the Indian education sector is on its way to become the next “flavour” of the season for private equity (PE) investors.

While government spending on education remains comparable to other developing nations (approximately 4% of GDP), structural inefficiencies and lack of focus on primary education have resulted in a low adult literacy rate of approximately 67% and a low retention rate in schools of approximately 73%. While India is rated amongst the highest in terms of GDP per capita spending per pupil on tertiary education (beating developed economies like United Kingdom, United States and Japan), it is ranked in the lower spectrum for GDP per capita spending per pupil on primary education, as per UNESCO statistics for 2006.

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