Obama, Modi Commit to Full Implementation of 2006 Nuclear Deal

Jan 26, 2015 02:35 AM EST

U.S. President Barack Obama & Indian Prime Minister Narendra Modi

(Photo : Reuters) U.S. President Barack Obama stands next to Indian Prime Minister Narendra Modi (R) waving as they leave after giving their opening statement at Hyderabad House in New Delhi January 25, 2015. In a glow of bonhomie, Obama and Modi announced a breakthrough on nuclear trade on Sunday, a step that both sides hope will help establish an enduring strategic partnership. REUTERS/Adnan Abidi (INDIA - Tags: POLITICS)

U.S. President Barack Obama and Indian Prime Minister Narendra Modi announced on Monday that they have reached an agreement to implement fully a 2006 nuclear deal. It was made possible by resolving differences that have stymied bilateral relations and would open further the door for nuclear trade.

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It mainly involves addressing issues on liability of American supplies to India if a nuclear accident occurs, and U.S. demand on monitoring what happens to nuclear materials it would export to India, reports Reuters.

In the past, India was hesitant to protect American supplies from liability, which is the international standard, because of the Bhopal nuclear disaster.

Obama left it to American and Indian companies to go forward and pursue higher trade after Washington and New Delhi removed the major irritants and reached an agreement.

Besides the nuclear deal, the two heads of state also came up with a 10-year framework on defense and cooperation deals, including the joint production of drone aircraft and equipment to be used by Lockheed Martin for the manufacture of C-130 military transport jets.

Obama also agreed to financing incentives that would boost India's use of renewable energy to lower its carbon dioxide emissions.

The high level of diplomacy, however, was without the stiffness that characterizes state visits as the Indian PM breached protocol and gave the U.S. president a bear hug and called him "Barack." Ironically, a year ago before Modi became prime minister, he was even denied a U.S. visa.

Obama also attended on Monday India's Republic Day parade, which required the deployment of 40,000 security staff and installation of 15,000 new closed circuit surveillance cameras in the capital city.

The Times of India reports that a seven-layer security ring was placed on the VIP enclosure, while anti-aircraft guns were placed on standby to hit any aerial intruders, and airports near Delhi were closed temporarily.

The president, though, will skip visiting the iconic Taj Mahal and instead leave India earlier than scheduled to make a side trip to Saudi Arabia to pay his respect to King Abdullah who died last week.