Bali: Manmohan meets Obama, Jiabao

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Bali: Manmohan meets Obama, Jiabao

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Indian Prime Minister Manmohan Singh met with US president Barack Obama and Chinese Premier Jiabao.

18 November,2011 12:14 pm

Manmohan discussed his countrys contentious nuclear-liability laws with US President Barack Obama during a meeting Friday on the sidelines of an Asian summit in Bali.The US in 2005 signed a civilian-nuclear agreement with New Delhi, paving the way for US companies to export nuclear material and equipment to India. But Indias parliament last year passed an act that made those companies liable to pay compensation without monetary limit in the event of a nuclear accident, which has deterred US firms from engaging with India.The Indian government this month announced new rules implementing the act which effectively limits the liability on foreign suppliers to just below $300 million and imposes time constraints on claimants seeking compensation.The US risks losing out to China, which is trying to overturn its historically poor relations with India, with which it fought a brief border war in 1962 that was won by Beijing.Manmohan Singh also met Chinese Premier Wen Jiabao Friday on the sidelines of the Association of Southeast Asian Nations summit in Bali, Indonesia.China is now Indias second-largest trading partner, and two-way commerce between the countries has burgeoned to $60 billion. Mr. Wen traveled to India in December last year with a large business delegation to search for new business deals.But there are still tensions between the two countries, most recently over Indias decision to push ahead with oil and gas exploration deals with Vietnam in the South China Sea. Beijing claims India is planning to drill in waters that rightfully belong to China and has asked it to cease activity. India has rejected the claim.