First of all, Indian nuclear reactors are not in under control of IAEA. And Indian safety record is very bad. India has 18 nuclear reactor (more then china) so their uranium requirement is too much high. The nuclear fuel supplier to India is Russia whose safety record is too bad (remember Chernobyl) and in agreement India is only to chained to back the used Russian uranium.
But this technology also gives technology to enrich more uranium and it is open restriction to NPT and UN laws and IAEA rules.
See this news publish in The Nation newspaper
“Weapons experts warn US lawmakers on Indian nuclear deal
Arms experts cautioned US lawmakers Tuesday against backing a civilian nuclear deal with India that they said violated a global atomic agreement and dampened efforts to reign in nuclear renegades Iran and North Korea.
"The main point is that our strategic interest dictates that we should not discard our nonproliferation policy and our Treaty obligations," the experts said in a joint letter, citing the Nuclear Non Proliferation Treaty (NPT).
"To do so would only enfeeble our case against NPT violators," the 10 experts said, referring to Iran and North Korea.
By paving the way for the United States and other nuclear supplier states to provide nuclear fuel to India, the deal would free up the Asian giant's "limited domestic nuclear fuel making capacity to produce highly enriched uranium and plutonium for weapons," they said.”
http://www.nation.com.pk/daily/june-2006/21/latest.php