Hello Shaswat,
The agreement between the Indian and U.S. governments pertaining to co-operation in civil-nuclear energy is popularly called the 123 Agreement. It has been named so because it is based on section 1.23 of the US Atomic Energy Act; thereby India has been given a unique status of not being an NPT signatory, yet involved in nuclear commerece. In simple words, India after conducting the N-Bomb tests in 1974 and again 1998, proclaimed itself as a "nuclear power", but did not get international recognition, unlike China. Several sanctions and restrictions were placed on India, its scientists and companies. However, india's impeccable record in nuclear non-proliferation and its commitment to the spirit of the Non-proliferation treaty has changed the future outlook for India. This agreement enables INdia to build nuclear power plants, a necessity in future. Further it helps India break the "nuclear apartheid" it has faced for decades. Also, it helps India to raise its international stature and profile significantly - due to its unique status, Pakistan doesnt get any of this! Morover, this leads to more strategic embrace with the UD, which, whether u like it or hate it, IS THE SOLE SUPERPOWER in the world. Indeed China is growing tremendously, but its attitude towards India has been hostile. It has occupied parts of Kasmir, it stakes claim on entire Indian state of Arunachal Pradesh and Sikkim; Infact China helped Pakis develop their missile and N-bombs, ---for what? just because they hate to see India developing. They defeated us in the 1962 Indo-CHina war, and want to do it again.and they have a sort of "superiority complex". we indians must break it. China scuttles almost every attempt India makes to grow in international arena. It incurs losses but outbids india in oilfield biddings in africa, it expects India to rein in on tibet supporters while itself captures a portion of kashmir! They recently summoned the Indian ambassador to beijing at 2 am in the morning for no reason... showing a complete regard for diplomatic niceties in a friendly relationship. Chinese soldiers regularly intrude into territory, but India avoids it...lest China gets angry! It even says people from Arunachal dont need visas to visit China because they are CHinese citizens....look at their courage! how audacious!! tHEY ARE A BUNCH OF BIG DEVILS who are now beginning to get scared of India. THis deal has been bitterly opposed by China, because it fears India! though they themselves have such a deal with the US! I know i have written more about china rather than abt the deal, but it needs to be viewed in the right context.
Although this deal doesnt recognise india as a military N-power, but implicitly it does. Further it doesnt place any restriction on India doing another N-test in future, which it may do if, say, china or pakistan does! this deal doesnt give us food or water but it has taken away sleep from our neighbours. thats the way it should be. achhai ka zamana gaya!

Answered by Danish , an ibibo Citizen, at 3:19 PM on August 07, 2008