Describing the nuclear deal as a "landmark" in Indo-US relations, Prime Minister Manmohan Singh on Monday said the two countries are finalising details to make the pact fully operational, a step that will remove restriction on the flow of nuclear technology and open a large area of commercial opportunity for American businesses.
India and the US will also put in place a framework for bilateral cooperation in energy, security and climate change tomorrow when the two sides sign an MoU in this field.
Addressing the US-India Business and Chamber of Commerce here, he also said that new avenue for Indo-US collaboration has been opened in the defence sector with India allowing up to 26 per cent Foreign Investment in this sector.
"Our engagement with the US has been expanding on many fronts, throwing up new business opportunities," he said.
"The nuclear agreement was a landmark in Indo-US relations and I would like to acknowledge with deep appreciation, the very supportive role American business played in persuading Congress to support the initiative.
"We are currently finalising the details that will make the agreement fully operational. Once that is done, it will remove restrictions on the flow of technology in nuclear and many other areas. This will open a large area of commercial opportunities for US business," Singh said.
India and the US signed the landmark civilian deal in 2008 but three outstanding issues are holding up the implementation of the deal.
These are setting up of dedicated reprocessing facility by India under IAEA Safeguards, enactment of Liabilities Legislation by India and assurance on non-proliferation.
With regard to reprocessing facility, the two sides are engaged in negotiations and are trying to conclude them as soon as possible.
The Liability Bill has been cleared by the Cabinet and assurances on non-proliferation required by the US Energy Department to give licences under Section 810 to companies for civil nuclear deal with New Delhi.
Referring to the challenge of climate change, Singh said India is addressing the problem domestically through a National Action Plan for Climate Change, which outlines many new initiatives in energy efficiency, and clean energy.
"These are areas where your companies are leaders in the field, and we should explore possible areas of cooperation.
"We plan to sign with the US Government tomorrow a Memorandum of Understanding on Energy Security, Clean Energy and Climate Change. This will provide a framework for pursuing bilateral cooperation in specific areas," he said.
Singh said India is expanding area of defence collaboration including the possibility of procurement of defence equipment from the US.
"Our domestic private sector defence suppliers are now allowed to have up to 26 per cent foreign investment, opening a new avenue for Indo-US collaboration," he said.
