I hope you have to know why US backed out of Tarapur plant? Its because of increased insecurity of a possible Nuclear testing.
"India has still not tapped its resources to maximum thus the energy deficit"
True!!! But the deal is not just to enrich energy needs for the energy crippled country. India could use its nuclear weapons status as a lever to push for a multipolar world system as well as for global restraints on the development of WMD's. Or it could use its status as an instrument to help perpetuate an order based on the production of insecurity and violence in which it eventually hoped to be accommodated as a junior partner. But thats not a country on the outlook to become a major player in the world wants to become.
Just imagine how could US blithely walk away from 40 years of non-proliferation policy? Its just that there is a tectonic shift that is taking place in the bilateral relationship as a result of increasing fears in U.S. business and strategic circles about China. Giving India anything less, or insisting that it cap or scrap its nuclear weapons, is seen by Washington's neo-conservatives as tantamount to strengthening China in the emerging balance of power in Asia.
India is taking this to its own advantage and fullfilling energy needs is just one reason among many outlined in the 123 agreement.
US needs balance of power in Asia to counter China and India needs its borders secured and dont want to be beside an upcoming superpower.
