China and Pakistan reached a formal agreement in February 2013 to construct a third nuclear reactor in Chashma. This has caused widespread nervousness while making the NSG look weak-kneed.
Both the government as well and the strategic community are convinced that India must not join the Australia Group without a road map for the MTCR and the NSG.
Concerned about Pakistan’s nuclear and missile programmes, Australia has blocked the shipment of dual-use equipment to Pakistan on at least three occasions during the past two years.
Prime Minister Gillard's decision to reverse the uranium export policy not just indicates a dramatic shift in Australia’s strategic outlook, but also could endow a decisive fillip to its crisis-hit uranium industry.
Even the otherwise vague 2011 NSG public statement which inserted the NPT angle into the guidelines underlined that the NSG would implement the India-specific exemptions fully.
If India ratifies the CSC, both the right of the operator for recourse against the supplier and any third party action against the supplier would be nullified, thus providing American companies a singular advantage.
Unless the NSG is willing to modify its guidelines to allow ENR transfers to India, India should not seek admission to NSG membeship even if offered.
Under the November 2010 statement issued by India and the United States, India is committed to take only one step: harmonizing its export controls with those of all the four multilateral export controls regimes.
This Brief elaborates the principles that need to be followed to evolve a criteria-based approach to enable India to join the NSG as a full member and contribute materially and substantially to a future non-proliferation regime that will be acceptable to the international community as a whole.
The NSG will be in trouble if China goes ahead with its plan to sell nuclear reactors to a non-NPT country like Pakistan.