India is closely watching changes to U.S. laws on restrictions to the transfer of civil nuclear energy technology to India.

"Before we take up any reciprocal steps, we have to closely watch what happens to the U.S. laws on restrictions and lifting of embargo and the nuclear suppliers' group front, " said Anil Kakodkar, chairman of India's Atomic Energy Commission on Sunday.

He said the process followed the historic Indo-U.S. nuclear cooperation agreement, which Prime Minister Manmohan Singh and U.S. President Bush signed last month.

"The act of identification and segregation of the civilian and military nuclear facilities in India will be taken up in a phased manner, and is going to be purely on reciprocal basis, " Kakodkar said, The Indian Express newspaper said Monday.

Under last month's deal, Washington agreed to supply nuclear energy to India for its civilian program in return for India allowing the inspection of its civilian nuclear installation by International Atomic Energy Agency.

Kakodkar said there was recognition that India was fundamentally strong in research and nuclear technology development. He said it was important to recognize India's growing economy needed large energy input, adding over the next five decades, the country would need 10 times more electricity and so nuclear power was crucial.