Indian Council for Research on ICRIER-Wadhwani Chair in International Economic Relations India – US Policy Studies “Advancing the Strategic Potential of India-US INDIA-US INSIGHT Relations, Accelerating India’s Economic Development” Vol. 2, Issue 7 July 24, 2012 Prospects for India-Japan Civil Nuclear Cooperation - by Rajaram Panda India-Japan bilateral of December 2001, when both countries Links of Interest ties have shown signs not only agreed to “work as partners ICRIER - Wadhwani Chair of promise in recent against proliferation” of WMD, but also India – US Insight years. Both countries agreed to cooperate in implementing Vol. 2, Issue 6 have found rigorous export controls on sensitive and “Assessing the Third US-India convergence of dual-use materials and technology.1 Strategic Dialogue” interests in security and strategic by Hemant Krishan Singh & Aman domains. Economic ties are also In the global scenario, the current Raj Khanna looking up. However, cooperation debate centres on two main areas of the June 18, 2012 on the nuclear issue, an area of nuclear issue, namely abolition of nuclear India-US Insight is produced high potential, remains weapons and growing interest in the by the Indian Council for unexplored. While India is looking peaceful use of nuclear energy. Research on International for various sources of energy to Proponents of the first raise the demand Economic Relations (ICRIER), meet its increasing demand to for complete nuclear disarmament. The an autonomous, policy- sustain economic growth, Japan main votaries of this argument are the oriented, not-for-profit possesses expertise and “have-nots” like Japan, NAM countries, economic policy think tank. specialised high technology in the Australia, Canada and New Zealand, ICRIER's main focus is to nuclear field. Civil nuclear who have “argued rather from an enhance the knowledge cooperation can add to the idealistic standpoint, emphasizing the content of policy making robustness of bilateral ties. Both 2 inhumanity of nuclear weapons”. through research targeted at countries hold different improving India's interface perspectives on nuclear issues There have also been recent moves with the global economy. because of past experiences and towards nuclear disarmament by the policies. However, there have “have” nations, led by the US, whose ICRIER does not take specific been some signs of change in policy stance is determined by the policy positions; accordingly, recent times. security environment that has emerged in all views, positions, and the post-Cold War era. In particular, conclusions expressed in this publication should be Controlling the proliferation of President Barack Obama’s speech in weapons of mass destruction understood to be solely those Prague in April 2009, that aimed to (WMD) provides a common create a world without nuclear weapons, of the author(s) platform for both India and Japan is significant. The US Nuclear Posture © 2012 by the Indian Council to speak with one voice. The series Review (NPR) released in April 2010 for Research on International of Joint Statements and “moved Obama’s nuclear disarmament Economic Relations (ICRIER) Declarations issued by the top policy a step further by declaring a leadership of both countries reduction in the number and role of routinely stress this point. Japan nuclear weapons in the national security has noted India’s impeccable of the US and its allies”.3 ICRIER - Wadhwani Chair in track record on non-proliferation. India – US Policy Studies This became demonstrably clear The second trend, centred on growing as far back as the Joint Statement interest in nuclear energy world-wide, Amb. Hemant Krishan Singh Chair th ICRIER Core 6A, 4 Floor, India Habitat Centre P: 91 11 43112400 WWW.ICRIER.ORG/ICRIER_WADHWANI Lodhi Road, New Delhi -110 003 F: 91 11 24620180 1 INDIA-US INSIGHT| Prospects for India-Japan Civil Nuclear Cooperation| Vol.2, Issue7 | July 2012 including in developing Perspectives of India and Japan Even while negotiations on the countries, is driven by concerns civilian nuclear deal with the US about energy security and On the issue of civil nuclear were underway, there were global warming. While this cooperation between India and reports in 2006 that Washington “nuclear renaissance” may be a Japan, differences do exist. Though was putting pressure on India to welcome prospect, growth in several summit meetings have agree to a future moratorium on nuclear power generation taken place, a breakthrough in this testing of dual-use missile brings with it risks of safety, area has proved elusive. However, technology that could be used nuclear proliferation and the fact that both strive for the to deliver a nuclear payload and nuclear security. There is an ultimate goal of total elimination of testing another atomic device as inherent risk of nuclear power nuclear weapons remains a quid pro quo for the civilian being diverted towards military unquestioned. nuclear deal.6 India rejected purposes instead of the originally such a commitment as a back- intended peaceful uses. India-Japan bilateral ties had door entry to the CTBT, which it Therefore, securing this risk retreated into a chill following feels only came into existence demands that necessary safety India’s 1998 nuclear tests at after those who possessed mechanisms, non-proliferation Pokhran. Japan suspended all nuclear weapons had safeguards and nuclear security economic aid to then on-going developed the requisite know- measures are put in place. In projects under its ODA. The move how. fact, the principle of the three was seen in India as Japan’s over- “S’s” was agreed upon by the reaction and lack of understanding In view of the waiver granted by G-8 countries and was included of India’s compulsions. The 1998 the 45-nation NSG to India in 2008 in the Leaders’ Declaration of nuclear tests had also invited to conduct trade in nuclear the G-8 Hokkaido-Toyako sanctions from the UN and other materials and technology, India Summit in 2008. Here, the role of countries like the US. Political obviously expects Japan to re- the IAEA becomes essential. relations, however, steadily examine its position in the improved from 2001 onwards. specific context of bilateral civil This paper attempts to address nuclear commerce. the issue of the ongoing debate As the only country in history to in Japan, its dilemma on forging have been a victim of nuclear The ice was finally broken during civil nuclear cooperation with attack, Japan is ultra-sensitive to all former Japanese Prime Minister India, and how this cooperation things ‘nuclear’ and public opinion Yukio Hatoyama’s visit to India in would help in bringing relations is vehemently opposed to nuclear December 2009. In a joint press between the two countries proliferation and weapons in any interaction with Indian Prime closer. The possible impact of form.4 Unsurprisingly, Japan has Minister Dr. Manmohan Singh, he the Fukushima incident on remained inflexible on issues such as publicly referred to exchanges Japan’s nuclear future is also the Nuclear Non-Proliferation Treaty with his Indian counterpart on examined. The paper concludes (NPT) and Comprehensive Test Ban CTBT and Fissile Material Cut-Off that though the Fukushima Treaty (CTBT). According to the Treaty (FMCT) and expressed incident has resulted in a Japanese perception, a public appreciation for the reassurances temporary setback to the acknowledgement in India’s favour conveyed to him by Dr. Singh, negotiations on civil nuclear on these issues would send a wrong indicating that both countries will cooperation between the two signal to the world about Japan’s be able to act on these countries, neither country can future nuclear intentions. understandings to ensure a do away with nuclear energy as “positive conclusion”. Thus, even an option for their energy This underscores the fact that without a breakthrough, the security. On the contrary, India’s refusal to accede to the NPT seeds of progress on civil nuclear Fukushima provides a lesson to and CTBT remains an irritant in cooperation were sown. countries to move towards bilateral ties. stringent safety mechanisms to India’s quest for Nuclear Energy make nuclear energy a reliable On its part, India, from the very and clean source of energy for beginning, has taken a consistent India has a well developed and the future. position that the NPT is largely indigenous nuclear power discriminatory in nature and that program currently consisting of 20 the CTBT is a “flawed” pact.5 civilian nuclear reactors. It expects to develop a 20 GWe th ICRIER Core 6A, 4 Floor, India Habitat Centre P: 91 11 43112400 WWW.ICRIER.ORG/ICRIER_WADHWANI Lodhi Road, New Delhi -110 003 F: 91 11 24620180 2 INDIA-US INSIGHT| Prospects for India-Japan Civil Nuclear Cooperation| Vol.2, Issue7 | July 2012 nuclear capacity on line by 2020 bilateral civilian nuclear cooperation reconsider its position. Japan’s and 275 GWe by 2052, with the pact on June 28, 2010. Under this experience in Kazakhstan could aim to supply 25 per cent of pact, Japan would export its nuclear also be an appropriate guide.15 electricity from nuclear power by power generation technology and This will propel engagement by then.7 related equipment to India while Japanese corporations in Indian banning India from using them for economic activities, giving a Currently, India’s share of nuclear military purposes or transferring them tremendous boost to dormant energy in its overall energy to another country.10 economic ties between the two production is less than 3% but it countries. has plans to increase this in the The Japan Forum on International coming decades.8 It has also Relations (JFIR) has strongly urged When India obtained the NSG mastered some of the related Japan to forge civil nuclear links with waiver, it had agreed to let the technologies such as uranium India.11 Supporting as it does India’s International Atomic Energy exploration, mining, fuel economic growth momentum, Agency inspect 14 of its 20 fabrication, heavy water Japan is cognizant of the fact that reactors.