U.S. Nuclear Cooperation With India: Issues for Congress [Updated November 22, 2006] [open pdf - 166KB]
"On July 18, 2005, President Bush announced he would 'work to achieve full civil nuclear energy cooperation with India' and would 'also seek agreement from Congress to adjust U.S. laws and policies,' in the context of a broader, global partnership with India to promote stability, democracy, prosperity and peace. Administration officials have promoted nuclear cooperation with India as a way to reduce India's carbon dioxide emissions and its dependence on oil, bring India into the 'nonproliferation mainstream' and create jobs for U.S. industry. India, which has not signed the Nuclear Nonproliferation Treaty (NPT) and does not have International Atomic Energy Agency safeguards on all nuclear material in peaceful nuclear activities, exploded a "peaceful" nuclear device in 1974, convincing the world of the need for greater restrictions on nuclear trade. The United States created the Nuclear Suppliers Group (NSG) as a direct response to India's test, halted nuclear exports to India a few years later, and worked to convince other states to do the same. India tested nuclear weapons again in 1998. Nonproliferation experts have suggested that the potential costs of nuclear cooperation with India to U.S. and global nonproliferation policy may far exceed the benefits. At a time when the United States has called for all states to strengthen their domestic export control laws and for tighter multilateral controls, U.S. nuclear cooperation with India would require loosening its own nuclear export legislation, as well as creating a NSG exception."
CRS Report for Congress, RL33016