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Jan 26, 2015

ON DAY ONE, THE NUCLEAR DEAL IS DONE

A hotline that will now connect Prime Minister Narendra Modi and U.S. President Obama, a declaration of friendship, a renewed 10-year defence partnership, and the much-anticipated nuclear breakthrough marked the second summit between the two leaders, taking relations to what Mr. Modi called “a whole new level” and Mr. Obama referred to as “powerful symbolism backed by substance.” Announcing an end to the nuclear logjam, Mr. Obama said they had reached a “breakthrough understanding” that would allow nuclear contracts to be signed between U.S. firms and India. The agreement, including the completion of administrative arrangements, was a key highlight of the India-U.S. bilateral negotiations that marked the first day of Mr. Obama’s visit as chief guest at the Republic Day celebrations. “The civil nuclear agreement was the centrepiece of our transformed relationship,” said Mr. Modi referring to his previous meeting with Mr. Obama in September 2014. “I am pleased that six years after we signed our bilateral agreement, we are moving towards commercial cooperation, consistent with our law, our international legal obligations, and technical and commercial viability.” While the two sides did not disclose how U.S. concerns over the Indian supplier liability law were addressed, officials said “the deal is done,” as far as the government’s work was concerned. The two sides signed a renewed Defence Strategic Framework, which covers all aspects of defence cooperation, including the Defence Trade Technological Initiative under which they could co-produce four “pathfinder projects” and study cooperation on aircraft carriers and jet-engine technology and are committed to upgrading joint military and naval exercises.

On economic issues, the two sides did not announce any agreements.

Source - The Hindu

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