Indo-U.S. Deal

India is finally getting ready for a serious engagement with the United States, with the left now agreeing with the government to take it forward with IAEA.

On the approaching, 16^th of November, there will be a meeting of Prime Minister Manmohan Singh with the left party where the Minister has to support his stance.

So far, the deal was known for President Bush's "provocation" only, as Popular Republicans Rudy Giuliani and Mitt Romney do not expect any big breakthrough in relations with India, even after the deal materialises.

Russia, a big competitor of US for a $30 -billion India market, does not attach ropes to the transfer of sensitive technology to India so far, however this is not the case with US. American law bans US companies from selling any dual use technologies to India, which is a major trade dampener. Therefore, this deal is seen as a major leap for India to become a valuable global partner to the US and freeing up of major constraints in Indo-US trade in the process.

The meltdown of the left is considered to be an effort towards clearing its own image over the talk of nuclear renaissance for India but with the presidential election approaching next year, this deal is now seemed to be only "quarterly open". India had hoped to get IAEA, NSG clearances by December 2007 and US Congress vote on the 123 Agreement as well, which could now be narrowly possible by January only, beyond that a vote from Congress will be tougher because of the Nation going into Election arrangements. In addition, the Logistics Support Agreement is still pending with US which UPA has silently deferred since June.

The question arises as how the American Imperialism is benefited by this treaty? For USA, this deal is expected to reduce not only the competition for scarce hydrocarbon resources worldwide but also opens a whole new range of business possibilities for US companies in India. It will be a timely step for United States of America to achieve a new equilibrium of power in Asia and also for Bush to prove his candidature in the upcoming Presidential elections.

The major Transactions as per Indo-Russian defence deals include Akula-II nuclear powered submarine and Fifth Generation Sukhoi T-50 Frontline fighter, now the question is what big benefits are US officials expecting out of the reactor business.

US still don't mind competing in the same market where France and Russia are already set to protect their dominance as US officials explain, even if India buys just two reactors, It would be providing employment to 15000 Americans indirectly.

However, The timing of the agreement seems more politically driven than business oriented, the otherwise deterrent left party approval may prove to be a concrete step in saving the otherwise dead deal.