USA, India announce ‘breakthrough’ nuclear deal

The United States and India have reached a ‘breakthrough understanding’ regarding US investment in nuclear energy development in India.

US President Barack Obama announced the news at a press conference in New Delhi, India along with Indian Prime Minister Narendra Modi.

"We are committed to moving towards full implementation," Obama said. "This is an important step that shows how we can work together to elevate our relationship.

"Ultimately it is up to the companies to go forward, but the two governments came to an understanding," he added.

The agreement has reportedly resolved differences over the liability of suppliers to India in the event of a nuclear accident and US demands on tracking the whereabouts of material supplied to the country.

"I am pleased that six years after we signed our bilateral agreement, we are moving towards commercial cooperation, consistent with our laws and international legal obligations," Modi said. He was referring to a 2008 deal between the two countries that gave India access to civilian nuclear technology, which has been held up due to US concerns over India's strict laws on liability in the event of a nuclear accident.

He added that a climate deal between the US and China did not put pressure on India, which remains reluctant to commit to a peak year for emissions on the grounds that it needs economic growth.