The basic premise of this deal is that India needs energy to grow. Lets say this deal goes through and India succesfully implements this program which results in lots of energy generation and Indian economy booms. Here is my take on whats the parties involved are thinking:
Indian Govt:
Strategy : We have limited uranium production which cannot suffice even todays need for civilian energy and millitary needs. Lets go ahead, sign a deal with US get nuclear fuel which can be used for civilian purpose and use the indigenious uranium for military purpose.
US Strategy: Sell nuclear fuel to India. In return 1. IAEA (indirectly US) will monitor all our civilian nuclear reactors. 2. US will earn lots of dollars selling both fuel and equipment to India. 3. Lets hope India does a great job at increasing its energy supplies using this deal and grows economically enough to be dependent on the nuclear reactors for sustaining its growth.
