Obama reveals nuclear breakthrough on landmark India trip

(Reuters) - In a glow of bonhomie, U.S. President Barack Obama and Indian Prime Minister Narendra Modi unveiled plans to unlock billions of dollars in nuclear trade and to deepen defense ties, steps they hope will establish an enduring strategic partnership.

The two countries reached an understanding on two issues that, despite a groundbreaking 2006 agreement, had stopped U.S. companies from setting up reactors in India and had become one of the major irritants in bilateral relations.

"We are committed to moving towards full implementation," Obama told a joint news conference with Modi. "This is an important step that shows how we can work together to elevate our relationship."

The new deal resolved differences over the liability of suppliers toIndia in the event of a nuclear accident and U.S. demands on tracking the whereabouts of material supplied to the country, U.S. ambassador to India Richard Verma told reporters

"Ultimately it's up to the companies to go forward, but the two governments came to an understanding," he added.

Signaling warmth and determination to take ties to a higher level, Modi broke with protocol to meet and bear-hug Obama as he landed in New Delhi, then referred to him as Barack. It was a remarkable spectacle, given that a year ago Modi was persona non grata in Washington and was denied a visa to the United States.

Between a working lunch that included kebabs made with lotus stem, figs and spices and an evening banquet where Obama spoke a smattering of Hindi, the two leaders got down to talks.
They emerged with a 10-year framework for defense ties and deals on cooperation that included the joint production of drone aircraft and equipment for Lockheed Martin Corp's C-130 military transport plane.

Other deals ranged from an Obama-Modi hotline -- India's first at a leadership level -- to financing initiatives aimed at helping India use renewable energy to lower carbon intensity.  Read More at  landmark India trip