What is 123 agreement between India and USA?.Why is it called 123 agreement?

The 123 agreement between India and USA refers to Sec. 123 of the U.S. Atomic Energy Act. There is a ban on transfer of nuclear technology to other countries under this Act. The Hyde Act was passed by U.S.A to make an exception for India, to enable transfer of technology for civil nuclear energy. The 123 Agreement is the terms of engagement which operationalizes the treaty agreement between india and u.s.a for transfer of civil nuclear technology. The next step is to enter into agreement with the IAEA ( international atomic energy agency) for safegaurds of the civil nuclear reactors to be set up under the 123 agreement and to enter into an agreement with the NSG ( nuclear suppliers group) for supply of nuclear fuel i.e uranium for the civil nuclear reactors. Once India completes the agreements with IAEA and NSG, then the U.S. Congress will vote on the 123 agreement. Once it is approved by the U.S. Congress, then the deal is complete and India and U.S.A can enter into nuclear commerce i.e supply of nuclear reactors, transfer of technology, supply of nuclear fuel etc.

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