India, Australia to sign long-awaited nuclear deal

Australia’s prime minister is due to sign a deal Friday allowing nuclear fuel exports to energy-hungry India, as he meets the country’s new premier on a visit to boost economic ties. Tony Abbott, who flew into New Delhi late on Thursday after meeting business leaders in Mumbai, said the long-awaited agreement was a sign of “mutual trust” after a long-standing ban on uranium sales to India was lifted in 2012. The world’s third biggest uranium producer, Australia had previously ruled out such exports to nuclear-armed India because it has not signed the global non-proliferation treaty. But Abbott said on Thursday that he was assured of India’s commitment to peaceful power generation. Further, he said Australia will consider negotiating a free trade agreement with India once it has finalised a trade deal with China.

So, we are serious about free trade. At the moment, our priority is the free trade agreement with China, but there is an abundance of potential in the economic relationship between Australia and India.

Australian Prime Minister, Tony Abbott

Australia’s nuclear cooperation agreement for peaceful power generation will potentially ramp up India’s plans for more nuclear power stations, with only 20 small plants at present and a heavy dependency on coal. India is struggling to produce enough power to meet rising demand amid its 1.2-billion strong population as its economy and vast middle-class expand.

Asia-Pacific