New Delhi and Washington signed an agreement in 2008 on cooperation in nuclear energy, in particular the construction of U.S.-built nuclear plants in India. However, the agreement was hampered by clauses regarding India's use of nuclear fuel rods because of the lack of laws in the country on nuclear energy.

Washington has been wary of the possibility of India using foreign companies to service and regulate safety at the nuclear sites.

Until 2008, India was under international limitations on buying fuel, reactors and other equipment used for nuclear energy. After the limitations were lifted, India decided to build four new nuclear plants using U.S., Russian and French technology and equipment.

India has signed similar agreements with Russia and France.