NSG waiver opens sesame for dual-use technologies

More than nuclear power, India stands to gain access to a wide range of dual-use goods and technologies, from which it was barred, as a result of the waiver by the 45-country Nuclear Suppliers’ Group (NSG).

These are likely to have a more immediate impact on Indian manufacturing, R&D and scientific programmes than nuclear power, which will take seven to 10 years once the India-US civil nuclear deal comes into operation.

Dual-use goods and technologies, including software, are normally used for civilian purposes but may have military or nuclear applications. The United States and the European Union have an exhaustive dual-use list from titanium and its alloys to chemicals, advanced lasers, computers and flight control equipment (see table).

Manufacturers and suppliers in these domains are prohibited from trading these items with countries that have not signed the Non Proliferation Treaty (NPT). Last week, the NSG had agreed to a critical waiver for India on nuclear-related supplies though the country has not signed the NPT.

For dual-use items to become available to India, the country needs to amend its laws and put in place tighter controls to address national security and non-proliferation concerns.

Accordingly, the government is expected to consider amending the Foreign Trade (Development & Regulation) Act, 1992, which delineates the law governing the development and regulation of foreign trade.

The amendments proposal was listed on the Cabinet agenda last month, but was referred to a Committee of Secretaries (CoS), owing to “some misconceptions about the intent and purpose of the amendments,” a senior government official told Business Standard.

He expects the amendments to be approved by the Cabinet in the next few weeks.The official added that even in the “unlikely event” of the US Congress not clearing the accord, countries like France, which are part of the NSG, were interested in supplying such items to India.