Civil nuclear cooperation is an international concept and framework for the peaceful exchange of nuclear material, equipment, and technology between nations. Its modern history is rooted in the problem of preventing the diversion of civilian nuclear technology for military purposes. The Nuclear Suppliers Group (NSG), a voluntary association of nuclear-exporting countries, was formed in 1975 following India's first nuclear test in 1974 (Pokhran-I) to regulate this trade.
For India, the most significant instance is the India-US Civil Nuclear Agreement, also known as the 123 Agreement, which was initiated with a joint statement on July 18, 2005, and finalized in 2008. This agreement ended a three-decade US ban on nuclear trade with India.
The mechanism of the cooperation works by requiring India to separate its civilian and military nuclear facilities and place all its civilian facilities under International Atomic Energy Agency (IAEA) safeguards. India also committed to signing an Additional Protocol for more intrusive inspections and maintaining a voluntary moratorium on nuclear testing. In return, the NSG granted an India-specific waiver in September 2008, allowing member countries to engage in full civil nuclear trade with India despite its status as a non-signatory to the Non-Proliferation Treaty (NPT).
The cooperation connects to India's domestic legal framework, primarily the Atomic Energy Act, 1962, which governs the development and use of atomic energy. It also connects to the Civil Liability for Nuclear Damage (CLND) Act, 2010, which channels liability to the operator but allows a right of recourse against suppliers under Section 17. Recently, the framework has seen changes, with the US removing three Indian nuclear entities from its Entity List, and proposals for amendments to the Atomic Energy Act, 1962 and the CLND Act, 2010 being considered to revitalize the long-pending agreement.