The US has had a nuclear deal with India since 2005, meaning the US has continued to trade nuclear technology with them even though India is not a party to the nuclear Non-Proliferation Treaty (NPT) and a nuclear-armed nation.
The new deal, at least from a nuclear perspective, merely resolves questions about US tracking of nuclear material provided to India, and legal liability of suppliers to India.
The increased defense ties could potentially amount to billions of dollars for well-connected US arms suppliers, something President Obama has made a priority in his foreign policy.
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