The nuclear deal between India and Australia is finalized after the meeting between Prime Minister Narendra Modi and Australian Prime Minister Tony Abbott, who visited India. Australia will sell uranium to India and also offered to increase supplies of conventional fuel to help it overcome the shortages of power and fuel.
Australia has one third of world’s uranium resources and exports 7000 tonnes a year. Discussions on this agreement has began about two years ago after Australia lifted the long standing ban on selling uranium to India. The uranium which India gets from Australia will be used to help generate power for energy and help it move towards the goal of achieving energy security.
The deal is a forward step to India in achieving international acceptability for its nuclear programme despite not ratifying the nuclear non-proliferation treaty. India is the first country to buy uranium from Australian without being a signatory to this nuclear treaty. There are high stakes to similar agreements with the United States and France.