India nuclear deal will ease oil crisis, says Bush

US President George W Bush yesterday agreed a controversial nuclear energy deal with India despite the Asian democracy refusing to sign the nuclear non-proliferation pact.

Mr Bush acknowledged it will be difficult to persuade Congress to support the agreement, in which the US would share its nuclear know-how and fuel with India. But, he said, he’s confident it will be approved so India can power its fast-growing economy without expanding world demand for oil.

Critics say the US is making an exception for India, which has nuclear weapons but won’t sign the Nuclear Non-proliferation Treaty.

“Proliferation is certainly a concern and a part of our discussions, and we’ve got a good-faith gesture by the Indian government that I’ll be able to take to the Congress,” Mr Bush said.

“Congress has got to understand is that it’s in our economic interests that India have a civilian nuclear power industry to help take the pressure off the global demand for energy,” the president added. “To the extent that we can reduce demand for fossil fuels, it will help the American consumer.”

The agreement was a political coup, too, for Indian Prime Minister Manmohan Singh. “We made history,” he said, standing alongside Mr Bush in a sunwashed courtyard.

For a second day, thousands of demonstrators gathered in New Delhi to protest Mr Bush’s visit. Dozens of politicians, mainly from leftist parties, stood on the steps of the country’s national parliament building chanting “Bush go back!” and “Down with Bush!”

In private meetings, Mr Bush and Mr Singh discussed regional and international subjects, including the US-India relationship, terrorism, Pakistan and Nepal.

They announced new bilateral cooperation on an array of issues from investment to trade, health to the environment, agriculture to technology, and even mangoes. Mr Bush agreed to resume imports of the juicy, large-pitted fruit after a ban of nearly two decades.

The civilian nuclear agreement is the major building block of renewed relations between the US and India, which is seeking greater recognition on the world stage.

Critics say the US is using India as a counterweight to China’s growing economic and political influence, and argue that the agreement sends the wrong signal to North Korea and Iran, which have rejected calls for international monitoring of their weapons programmes.

In Washington, Democrat Ed Markey said the agreement was a “historic nuclear failure” that will put US national security at risk.

The agreement marks a major shift in policy for the US, which imposed sanctions on India over its 1998 nuclear weapons tests.