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Expanding Energy Sources Vital for India's Economy - The Wall Street Journal

14-04-2006


Former Defense Secretary William Cohen is right to point out that there are more nonproliferation advantages than potential disadvantages in the proposed U.S.-India civilian nuclear agreement ("A Pretty Good Deal For America1," editorial page, April 5).

It has long been a goal of the U.S. to bring India closer as a partner in the global non-proliferation regime. That is why Mohamed El Baradei -- the head of the International Atomic Energy Agency -- strongly supports the agreement, saying, "It would be a milestone, timely for ongoing efforts to consolidate the non-proliferation regime, combat nuclear terrorism and strengthen nuclear safety." The governments of the U.K., France, Russia and Australia are also in support.

But this agreement is first and foremost about India's energy needs. India is now one of the world's biggest economies and by 2020 it could be the fastest growing. It is the world's sixth-largest consumer of energy and by 2025 India's energy needs are expected to double. To reach its economic potential -- including annual growth rates in the 8%-10% range -- India must diversify its energy sources. Expanding its civilian nuclear power capacity, assisted by the nuclear technology and fuel this agreement will provide, is one way to accomplish that.

A growing and prosperous economy is critical for India's continuing positive development, including poverty reduction. It will also prove be a very good thing for U.S. trade and investment opportunities.