President Obama made history by coming to office with the promise of working towards a nuclear weapons-free world. Envisioning a new non-proliferation momentum, Obama promised to revive the Treaty on the Non-Proliferation of Nuclear Weapons (NPT) system and create nuclear security and energy architectures that will secure nuclear materials and make proliferation difficult. A year later, Obama realised the difficulties of selling his vision to his bureaucratic-military establishment, which resisted efforts to reduce the role of nuclear weapons while pushing for nuclear modernisation. As Obama’s nuclear policy evolves, India is apprehensive that its terms of engagement with the regime could be redefined by Obama. Re-emergence of the traditional divergences on non-proliferation now seems a potential outcome.