Overseas energy being a key factor in India's economic development, it is necessary to think whether we need to treat the country's global quest for energy resources as a purely commercial interaction with the energy market or as a larger strategy involving diplomatic activism. While not ignoring the importance of nuclear or alternative sources in the country's energy landscape, we need to understand that petroleum sources would continue to be indispensable for India's fuel economy in the foreseeable future.

The latest Comptroller and Auditor General (C&AG) Performance Report on Defence Services (No. 4 of 2007) has once again exposed the problems involved in Indian defence acquisition. The report has been critical virtually of all the processes of the acquisition cycle, from planning to the formulation of Qualitative Requirements (QRs), vendor selection, conduct of trial and evaluations and processes of induction.

Even though the Indo-US nuclear deal has passed one more hurdle with the completion of the 123 Agreement to the satisfaction of both governments, the remaining hurdles include the signing of agreements with the International Atomic Energy Agency (IAEA) and the Nuclear Suppliers Group (NSG) before the Agreement can go back to the US Congress for its final imprimatur.

While the amorphous threat of terrorism can be extrapolated on the basis of what happened on 9/11, this constitutes only the 'visible horizon' of the extent of the terrorists' innovation. They are likely to be on the lookout for new means to cause mass effect, which may even include transfer of weapons of mass destruction (WMD) to their intended target. As a predominant part of the vulnerable global trading system, sea-ports and commercial shipping are widely acknowledged to be highly suitable as vectors for delivering WMD.

Although it is nearly two years since the July 18, 2005 Joint Statement between President George Bush and Prime Minister Manmohan Singh announced their intention to facilitate civil nuclear commerce between India and the members of the Nuclear Suppliers Group, the process is still to be completed with even the first step towards that goal, an Indo-US agreement for peaceful nuclear cooperation, still under negotiations with apparently strong differences between the two countries on a number of issues. Expectations are that the agreement may be finalised by the end of this year.