UPSC Essentials | Mains answer practice — GS 3 : Questions on thorium-based nuclear power and India’s economic competitiveness (Week 140)

QUESTION 2

Discuss the role of manufacturing-led growth, supply chain resilience and regulatory reforms in enhancing India’s economic competitiveness in a geo-economically uncertain world.

QUESTION 1: Discuss how thorium-based nuclear power can contribute to India’s long-term energy security and reduce dependence on imported fuels.

Relevance: Renewed focus on advanced PHWRs, AHWR and thorium fuel cycles aligns with India’s three-stage nuclear programme, which has gained relevance amid global energy volatility and climate commitments. The issue links science & technology, energy security, climate change and strategic autonomy, making it a high-probability GS-III topic.

Note: This is not a model UPSC answer. It only provides you with a thought process which you may incorporate into the answers.

Introduction:

— India’s nuclear strategy has long rested on a three-stage programme, built around a basic constraint: the country has limited uranium but vast reserves of thorium.

— Transitioning to thorium based nuclear power generation in India is critical to our securing energy independence. This requires building sufficient inventory of fissile U233 (uranium233) through irradiation of thorium in thermal or fast nuclear reactors of relevant capacity.

Body:

You may incorporate some of the following points in your answer:

— In the first stage, pressurised heavy water reactors (PHWRs) run on uranium to generate electricity and produce plutonium. The second stage uses this plutonium in fast breeder reactors to multiply fuel and prepare the ground for the final phase — thorium-based nuclear power, where thorium is converted into uranium-233 for long-term energy security.

— The thermal reactor capacity is on a growth path with the Nuclear Energy Mission targeting 100GWe nuclear power capacity with PHWRs constituting the bulk. This scale-up is clearly an opportunity to start producing fissile U233 at scale in PHWRs and enable a faster transition to thorium-based nuclear power generation in India.

— It is possible to have Thorium-HALEU-based drop-in fuel for PHWR, which would also lead to economic, safety and security benefits while efficiently converting thorium to U233.

— Scaling up PHWR capacity to 50-75 GW by the target date of 2047 would require an average annual capacity addition of around 3 GWe, which would mean adding 5 to 8 reactors every year, depending on the mix of 700 MWe and 220 MWe units. This clearly would require significant additional financial resources and participation of private players.

(Source: BARC, DAE)

— Conversion of thorium to fissile uranium at scale through irradiation of thorium was envisaged in FBRs to be developed in the second stage. While progress is being made with the second stage programme, its full scale deployment to constitute irradiation platform/s for conversion of thorium to U233 at scale is considerably delayed. Balance development work in Fast Reactor domain involves completion of oxide-fueled PFBR (prototype fast breeder reactor), constructing follow up FBRs, development and subsequent deployment of short doubling time metallic-fueled fast reactors for faster growth of fast reactor capacity, along with establishment of related aqueous- and pyro-nuclear recycle technologies.

Conclusion:

— There is a need to prioritise our development effort for futuristic technologies needed for our country (metal fuel reactors, molten salt reactors, high temperature reactors, thorium fuel cycles etc. etc.) and leverage proven imported technologies ready for addressing current niche demands.

(Source: Expert Explains: Why Thorium-based nuclear power generation is key to securing India’s energy independence)

Points to Ponder

Read about thorium-based fuel

In India, where thorium is found?

Related Previous Year Questions

How can India achieve energy independence through clean technology by 2047? How can biotechnology can play a crucial role in this endeavour? (2025)

With growing energy needs should India keep on expanding its nuclear energy programme? Discuss the facts and fears associated with nuclear energy? (2018)

QUESTION 2: Discuss the role of manufacturing-led growth, supply chain resilience and regulatory reforms in enhancing India’s economic competitiveness in a geo-economically uncertain world.

Relevance: Budget 2026 comes at a time when India is transitioning from post-pandemic recovery to medium-term structural growth, amid global slowdown, geopolitical uncertainty and supply-chain realignments. The question tests understanding of fiscal policy trade-offs, making it relevant for analysing India’s readiness for the next decade of high-growth aspirations (Amrit Kaal).

Note: This is not a model UPSC answer. It only provides you with a thought process which you may incorporate into the answers.

Introduction:

— India’s economy is demonstrating robust performance, with GDP growth projected at 7.4% for the current fiscal year, inflation contained at 1.7%, and monetary policy easing to support expansion.

— This strength is underscored by surging global interest, evident in substantial investment proposals for data centres from leading international tech firms, positioning India for enhanced digitisation.

Body:

You may incorporate some of the following points in your answer:

— To navigate potential future headwinds, the emphasis can be on bolstering manufacturing, catalysing private capital expenditure, streamlining business operations, and securing access to critical resources and advanced R&D.

— A cornerstone should be elevating manufacturing’s share in GDP to 25% while recognising the intensifying global competition where manufacturing GVA is increasingly concentrated in a few hubs. To thrive, India must prioritise resilient supply chains. This begins with identifying vulnerabilities in key imports whose demand is set to rise and whose shortages could disrupt downstream industries.

— A comprehensive review of customs tariffs is essential to eliminate inverted duty structures, ensuring duties on raw materials are lower than on intermediates, which in turn are lower than on finished goods.

— Reforms should incentivise states to align industrial power tariffs with actual costs, advance land reforms for increased availability for industrial and commercial usage, and expedite pending logistics projects for more competitive factor markets. Collectively, these steps will elevate manufacturing GVA, generate jobs and fortify India against geo-economic risks.

— Boosting private capital expenditure is another critical lever. There should be clear targets and implementation roadmaps for the public-private partnership (PPP) pipeline and asset monetisation programs. Accelerating these will create productive capacity like road, energy infrastructure, rail without increasing Government expenditure and debt, crowd in private investment and fuel sustained growth.

— Continuing ease of doing business reforms at both central and state levels like rationalising environmental approvals and construction permits, decriminalisation of economic laws, is vital to inject dynamism, accelerate capital deployment, and mitigate business risks. This involves ongoing digitization of approvals, decriminalization of minor offenses, review of licensing and putting a statute of limitation in economic laws. Easing regulatory burdens, especially those that disproportionately affect smaller enterprises is crucial to foster entrepreneurship and job creation.

— Future competitiveness hinges on securing access to essential resources and advancing R&D. For R&D, while the government is already advancing initiatives, the focus should shift toward collaborative frameworks. A potential deep tech venture fund to support startups in AI, robotics, semiconductors, space, and advanced manufacturing can also be considered.

Conclusion:

— With strong economic growth and fiscal discipline, India can prioritise investments in manufacturing resilience, critical resource security, private capital, ease of doing business reforms, and scaled R&D/AI. These targeted steps will drive innovation-led productivity, attract global investment, create jobs, and position India as a self-reliant, technology-powered global leader.

(Source: India at an inflection point: How Budget 2026 can shape the next decade)

Points to Ponder

How sustainable is growth if private investment and exports lag?

How can India balance self-reliance with WTO commitments and export competitiveness?

Related Previous Year Questions

Explain how the Fiscal Health Index (FHI) can be used as a tool for assessing the fiscal performance of states in India. In what way would it encourage the states to adopt prudent and sustainable fiscal policies? (2025)

Why is Public Private Partnership (PPP) required in infrastructural projects? Examine the role of PPP model in the redevelopment of Railway Stations in India. (2022)

Previous Mains Answer Practice

UPSC Essentials: Mains answer practice — GS 3 (Week 138)

UPSC Essentials: Mains answer practice — GS 3 (Week 139)

UPSC Essentials: Mains answer practice — GS 2 (Week 138)

UPSC Essentials: Mains answer practice — GS 2 (Week 139)

UPSC Essentials: Mains answer practice — GS 1 (Week 138)

UPSC Essentials: Mains answer practice — GS 1 (Week 139)

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