UPSC Key: Kudankulam, Semiconductor Mission (ISM) 2.0 and Intercontinental ballistic missile

NPCIL: Kudankulam data breach not linked to nuclear security

Syllabus:

Preliminary Examination: Current events of national and international importance

Mains Examination: General Studies III: Science and Technology- developments and their applications and effects in everyday life.

What’s the ongoing story: Following reports of a data breach at the Kudankulam Nuclear Power Plant, the Nuclear Power Corporation of India Limited (NPCIL) said on Wednesday that the leaked information does not pertain to any nuclear safety or security systems.

Key Points to Ponder:

• What is Nuclear Power Corporation of India Limited (NPCIL)?

• What is the role of NPCIL?

• What Information was leaked?

• What exactly Nuclear Power Corporation of India Limited (NPCIL) said about data leak from the Kudankulam Nuclear reactor plant?

• Did Kudankulam Nuclear reactor plant affected by the data leak?

• Why is the Kudankulam data leak of significance?

• What is Nuclear Energy?

• Why do we need nuclear energy?

• How does a nuclear Power Plant work?

• What are the Components of a nuclear Power Plant?

• What are the types of nuclear Power Plant?

• What is the current Status of Nuclear Energy and Nuclear power plants in India?

• Map Work-Mark Nuclear power plants

Key Takeaways:

• In a statement, NPCIL said the compromised data relates only to the plant’s conventional Balance of Plant (BoP) common service facilities, for which Reliance Infrastructure Ltd was awarded a contract in 2018.

• Located in Tirunelveli district of Tamil Nadu, Kudankulam Nuclear Power Plant consists of six units of Pressurised Water Reactors of VVER design, which were established in technical collaboration with Russia. The first two units (KKNPP Units-1 & 2) are already in operation, while Units 3 and 4 are still under construction and are due to be operational by 2027. The remaining two units are at different stages of progress.

• The present data breach is related to Units 3 and 4. NPCIL said the Engineering, Procurement and Construction (EPC) contract for BoP common services package was awarded to Reliance Infrastructure Ltd in 2018 through a public tender process. The scope of the contract included engineering, procurement/supply, construction and commissioning of common service facilities.

• NPCIL said it provided indicative drawings and technical specifications to the bidders as part of the public tendering process. “Based on these inputs and the requirements of the project, the EPC contractor, M/s Reliance Infrastructure Ltd, prepared detailed engineering drawings in consultation with the respective Original Equipment Manufacturers (OEMs). The designs proposed by Reliance Infra Ltd, meeting the technical specifications, are accepted by NPCIL after review,” it said.

Do You Know:

• Ransomware group World Leaks published a massive 14.3 GB cache containing over 19,000 files related to the Kudankulam project on the dark web. The breach occurred on a server managed by third-party data centre provider Yotta. The server belongs to Reliance Infrastructure, a Reliance Group subsidiary contracted in 2018 to build conventional facilities for the plant’s under-construction Units 3 and 4.

• Officials from NPCIL downplayed the safety threat, clarifying that the leak belongs to the conventional “Balance of Plant” (BoP) package. They emphasized that critical internal networks remain completely isolated (“air-gapped”) and unaffected. India’s cyber-security agency, CERT-In, is actively investigating the incident.

Other Important Articles Covering the same topic:

📍Expert Explains | India’s nuclear pivot: FBRs the future, PHWRs to anchor growth until technology matures

Previous year UPSC Prelims Question Covering similar theme:
1) In India, why are some nuclear reactors kept under “IAEA safeguards” while others are not? (UPSC CSE, 2020)
(a) Some use uranium and others use thorium
(b) Some use imported uranium and others use domestic supplies
(c) Some are operated by foreign enterprises and others are operated by domestic enterprises
(d) Some are State-owned and others are privately owned

Previous year UPSC Mains Question Covering similar theme:
📍With growing energy needs should India keep on expanding its nuclear energy programme? Discuss the facts and fears associated with nuclear energy. (2018)
📍Give an account of the growth and development of nuclear science and technology in India. What is the advantage of fast breeder reactor programme in India? (2017)

India-UK trade deal kicks in: PM says boost for farmers & MSMEs

Syllabus:

Preliminary Examination: Current events of national and international importance.

Mains Examination: General Studies II: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.

What’s the ongoing story: The India-UK Comprehensive Economic and Trade Agreement (CETA), under which 99 per cent of Indian goods entering the UK and 90 per cent of UK goods entering India will either be duty-free or attract reduced tariffs, came into force on Wednesday.

Key Points to Ponder:

• India-UK Deal-know its key takeaways

• What you understand by Free Trade Agreements (FTAs)?

• Know the types of Trade Agreements.

• Why the Free Trade Agreement (FTA) matter to India?

• How India-UK Free Trade Agreement will benefit India and UK?

• What are the key goods included in India-UK Free Trade Agreement?

• What do you understand by the ‘Rules of origin’?

• What led to the deal, and what issues emerged during negotiations?

• What about UK’s carbon tax?

• How the India-UK FTA represents a significant shift in India’s historically protectionist trade strategy?

• What are the deal’s structural features?

• Why agriculture and dairy continued to remain off-limits in the UK deal?

• ‘The Double Contributions Convention (DCC) for social security contributions’-what you understand by the same?

• How duty reductions on Scotch whisky reflect India’s broader strategic balance between revenue interests and trade liberalisation?

Key Takeaways:

• Prime Minister Narendra Modi described the operationalisation of the agreements as “a significant moment in the India-UK partnership”. British High Commissioner Lindy Cameron called it the “new gold standard of trade deals”.

• Alongside CETA, the Agreement on Social Security (Double Contribution Convention) exempts Indian professionals on temporary UK assignments of up to 60 months from making social security contributions in both countries, reducing costs for employees and employers.

• To celebrate the occasion, a special package of select British goods arrived at the British Deputy High Commission in Mumbai on Wednesday morning aboard a British Airways flight. “The package contained goods from the UK benefiting from reduced tariffs, including cosmetics, food products and alcoholic beverages,” said a statement.

• The trade agreement, signed in July last year, is expected to benefit a wide range of sectors on both sides, including automotive, manufacturing, consumer goods, creative industries and medical technology. It lowers tariffs across sectors, including textiles, leather, gems and jewellery, engineering goods, marine products, pharmaceuticals and processed food, while expanding market access for services, digital trade and government procurement.

Do You Know:

• According to government data, merchandise trade between the two countries stood at US$ 25.1 billion in 2025-26, while bilateral services trade was US$ 35.4 billion in 2024.
The agreement is expected to at least double bilateral trade from the current level of about 48 billion pounds annually by 2030, while boosting long-term economic growth in both countries.

• For the first time, India has given major concessions to imported cars and alcoholic beverages in an FTA, reducing tariffs for British cars from up to 110% to 30% in year one. The duty will go down to 10% by year five of the deal coming into effect. The annual quota for British cars starts at 20,000 vehicles and peaks at 37,000 by year five.

• India has also given major concessions to British alcoholic beverages by reducing tariff from 150% to 75% initially and then to 40% by year 10. According to Delhi-based think tank Global Trade Research Initiative (GTRI), this is a major concession as India is one of the world’s largest and fastest-growing spirits markets and the UK is the world’s largest whisky exporter.

• Indian textile exports currently face tariffs of up to 10% in the UK. The trade deal could place India on a more level playing field with competitors such as Bangladesh, thereby boosting exports. India’s gems & jewellery exports, along with footwear exports, will also get a boost as duty in the UK has been eliminated from up to 12% and 16% respectively.

Other Important Articles Covering the same topic:

📍India-UK FTA kicks in: What changes for consumers and industry

Previous year UPSC Prelims Question Covering similar theme:
2) Consider the following countries: (UPSC CSE, 2018)
1. Australia
2. Canada
3. China
4. India
5. Japan
6. USA
Which of the above are among the ‘free-trade partners’ of ASEAN?
(a) 1, 2, 4 and 5
(b) 3, 4, 5 and 6
(c) 1, 3, 4 and 5
(d) 2, 3, 4 and 6

Previous year UPSC Mains Question Covering similar theme:
📍How would the recent phenomena of protectionism and currency manipulations in world trade affect macroeconomic stability of India? (2018)

Politics

Eye on supply chain, Cabinet approves Rs 1.27 lakh crore semiconductor push

Syllabus:

Preliminary Examination: Current events of national and international importance.

Main Examination: General Studies III: Infrastructure: Energy, Ports, Roads, Airports, Railways etc.

What’s the ongoing story: The Union Cabinet on Wednesday approved the second iteration of India’s ambitious Semiconductor Mission, with an outlay of Rs Rs 1.27 lakh crore. The fresh scheme will carry a key focus on subsidising the supply chain around chip manufacturing to attract companies producing commodities like gases, and chemicals used in the production process. The duration of the scheme is six years.

Key Points to Ponder:

• What is semiconductor?

• What is India Semiconductor Mission (ISM) 2.0?

• How India Semiconductor Mission (ISM) 2.0 is different from India Semiconductor Mission (ISM) 1.0?

• How are they different from traditional chips?

• What is the most basic component of a semiconductor chip?

• Semiconductors are the foundation of nearly every modern electronic gadget. Where does India stand in the semiconductor industry?

• The Government of India has undertaken several initiatives to promote electronics manufacturing-Know the important schemes

• What are the current challenges of the semiconductor industry in India?

• India’s semiconductor push-know in detail

• Why is India focusing on semiconductor manufacturing?

• What factors may contribute to potential challenges in the domestic semiconductor manufacturing ecosystem?

• What makes Semiconductors the most important commodities in the global market right now?

• What is the supply chain for semiconductors?

• What are the steps in the semiconductor supply chain?

• Which nation holds the distinction of being the primary source of semiconductors on a global scale?

Key Takeaways:

• Compared to the first iteration of the India Semiconductor Mission (ISM), government incentives have been slashed in ISM 2.0. For instance, the first scheme carried a uniform capex subsidy of 50% for fabs and assembly plants. However, under ISM 2.0, silicon fabs will receive a subsidy of 40%, and other fabs will get 35%. Similarly, the incentive for advanced packaging has been kept at 35%, and 25% for conventional packaging.

• Beyond that, ISM 2.0 will also offer government subsidies for research and development, and talent development in the semiconductor sector.

• The country’s foray into semiconductor production and packaging has been outlined as a strategic move by New Delhi to insert itself into the global chip supply chain and establish the sector to deepen domestic value addition in its electronics sector. Semiconductors — used to power devices from toasters to fighter jets — have become a critical resource amid heightened geopolitical tensions over the last few years.

• By 2029, India expects to achieve the capability to design and manufacture chips required for nearly 70-75% of domestic applications, and by 2035, the country aims to be among the top semiconductor nations globally.

• ISM 1.0, launched in 2021, was conceived as a state-backed push to build a full-stack chip ecosystem, from fabrication and packaging to design and display manufacturing. Under the scheme, cumulative investments of around Rs 1.64 lakh crore have been committed. In this year’s Union Budget, Finance Minister Nirmala Sitharaman announced the India Semiconductor Mission 2.0 to produce equipment and materials, design full-stack Indian IP and fortify supply chains.

• The 12 chip plants that have received approvals under the ISM are being constructed in states such as Gujarat, Assam, Andhra Pradesh, Uttar Pradesh, and Odisha. They include one full-fledged commercial semiconductor fabrication facility, and assembly and testing plants.

Do You Know:

• The Union Budget 2026–27 marked a decisive moment for India’s technology ambitions with the announcement of India Semiconductor Mission 2.0. The new phase signals a clear policy push to deepen domestic semiconductor capabilities at a time when chips underpin every critical digital and industrial system.

• ISM 2.0 will focus on producing semiconductor equipment and materials in India, designing full stack Indian semiconductor intellectual property, and fortifying both domestic and global supply chains. A provision of Rs. 1,000 crore has been made for ISM 2.0 for FY 2026–27, with a strong emphasis on industry led research and training centres to drive technology development and create a future ready skilled workforce.

• Semiconductors are the backbone of modern electronics, powering computers, mobile devices, telecommunications, automobiles, defence systems and artificial intelligence. India has made steady progress in consolidating earlier investments into a full-stack value chain of its semiconductor ecosystem under ISM 1.0, expanding design capabilities and advancing fabrication, assembly and testing infrastructure across the country. This momentum reflects the broader vision of Aatmanirbhar Bharat and India’s transition from policy formulation to production readiness. Building on these gains, ISM 2.0 seeks to consolidate India’s position as a reliable and competitive participant in the global semiconductor network.

Other Important Articles Covering the same topic:

📍India Semiconductor Mission 2.0

Previous year UPSC Prelims Question Covering similar theme:
3) With reference to solar power production in India, consider the following statements: (UPSC CSE, 2018)
1. India is the third largest in the world in the manufacture of silicon wafers used in photovoltaic units.
2. The solar power tariffs are determined by the Solar Energy Corporation of India.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

The Editorial Page

Australian uranium fuels next phase in India’s n-programme

Syllabus:

Preliminary Examination: Current events of national and international importance.

Main Examination: General Studies II: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.

What’s the ongoing story: Manpreet Sethi, Bhawna Budhwar Writes-A new enthusiasm has gripped the nuclear power sector. While the government assures access to nuclear fuel, the nascent private industry must imbibe the highest standards of safety, security and safeguards

Key Points to Ponder:

• The third India-Australia Annual Summit at Melbourne-what are the key outcomes?

• Australia’s policy of exporting uranium-know in brief

• Australia’s current change of heart in exporting Uranium to India-know in detail

• Examine India and Australia bilateral relationship in detail

• The India-Australia bilateral relationship-What history says?

• Strategic ties between India-Australia-How they have evolved?

• India, Australia and China-Examine

• Uranium cooperation between India and Australia-Know in detail

• How do Australia and India working together to combat climate change?

• What is the primary objective of the Comprehensive Economic Cooperation Agreement (CECA) between India and
Australia?

Key Takeaways:

• Australia and India seem to have rediscovered a new relevance for their relationship in these trying times, where they face some common security concerns. This was reflected in the forward-looking joint statement that lists many areas of cooperation. One issue that particularly stands out is the agreement on uranium supplies from mineral-rich Australia to the expanding nuclear power programme of India.

• Historically, Australia has maintained a strict policy of exporting uranium only to signatories of the treaty on non-proliferation of nuclear weapons (NPT). Canberra had frowned when India, as a non-NPT member, had concluded the nuclear cooperation agreement with the USA in 2008 and subsequently was exceptionalised by the Nuclear Suppliers Group to source uranium, nuclear equipment, technology and reactors from the international market.

• Australia’s current change of heart marks its transition from being a sceptic of uranium exports to India to accepting becoming a “reliable, trusted supplier of uranium to India”. This, of course, is good news for India since Australia holds the world’s largest uranium reserves, approximately one-third of the global total.

• And, the quality of Australian uranium far outstrips India’s low-grade mineral, which imposes higher extraction costs and generates significant tailings that need to be safely managed to protect human health and the environment.

• India’s consistent efforts to prove its non-proliferation credentials facilitated the shift in the Australian position. In fact, this began to gradually change once India signed an Additional Protocol (AP) with the International Atomic Energy Agency (IAEA) in 2009, thereby committing itself to a “separation plan” that bifurcated Indian nuclear facilities into civilian and military.

• In doing so, India safeguarded its strategic autonomy while meeting the non-proliferation requirements necessary for international civilian nuclear cooperation. Once the AP came into force in 2014, Australia agreed to allow uranium exports to India as part of an Australia-India Nuclear Cooperation Agreement which was concluded in 2015.

Do You Know:

• Between 2008-09, when the Indo-US nuclear deal opened international nuclear commerce for India, and up to 2025, India has imported 18,842.60 MTs of uranium in various forms under IAEA safeguards. This includes imports of natural uranium ore concentrate from Canada, France, Kazakhstan and Uzbekistan and natural uranium dioxide pellets and enriched uranium from Russia.

• All Australian uranium supplied to India will remain strictly under IAEA oversight and safeguards to ensure it is used solely for civilian energy purposes.

• Australia, which holds approximately one-third of the world’s uranium reserves, aims to expand its clean energy market footprint. For India, this deal supports long-term energy security and helps meet its targets for non-fossil fuel and nuclear capacity.

Other Important Articles Covering the same topic:

📍India, Australia ink defence pacts, fast-track trade deal

Previous year UPSC Prelims Question Covering similar theme:
4) In which one of the following groups are all the four countries members of G20? (UPSC CSE, 2016)
(a) Argentina, Mexico, South Africa and Turkey
(b) Australia, Canada, Malaysia and New Zealand
(c) Brazil, Iran, Saudi Arabia and Vietnam
(d) Indonesia, Japan, Singapore and South Korea

Explained

Ladakh’s 7 councils & the decentralisation debate

Syllabus:

Preliminary Examination: Indian Polity and Governance

Main Examination: General Studies II: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

What’s the ongoing story: The Ladakh administration’s decision to constitute Autonomous Hill Development Councils (AHDCs) in each of the Union Territory’s seven districts has reopened a debate over how political power should be distributed in the region.

Key Points to Ponder:

• What has the Ladakh administration announced?

• Why are Ladakh’s civil society groups opposing the move?

• The debate has also opened a broader constitutional question. Ladakh’s geography undoubtedly requires administrative decentralisation. But should representative politics be similarly fragmented in a Union Territory with barely three lakh people?

• Why has the announcement triggered such distrust?

• How do Ladakh’s hill councils compare with similar bodies elsewhere?

• What is the Autonomous Hill Development Council?

• What Article 371 of the Constitution says?

• Map Work-Drass, Sham, Nubra, Changthang and Zanskar.

• Why creation of Autonomous Hill Development Councils in every district of Ladakh is significant?

• How decentralisation is improving governance in remote and border regions?

• What are the constitutional basis of local self-government in India?

• Why Ladakh wants constitutional safeguards?

Key Takeaways:

• While the administration says the move will deepen grassroots governance, the two civil society groups negotiating Ladakh’s future with the Centre — the Apex Body, Leh (ABL) and the Kargil Democratic Alliance (KDA) — argue that it could weaken the representative political structure they have been demanding under Article 371. The disagreement also reflects a trust deficit that has steadily widened between Ladakh’s leadership and the Centre since the region became
a Union Territory in 2019.

• On Monday, the Ladakh administration announced that an Autonomous Hill Development Council would be constituted in each of the Union Territory’s seven districts. Until now, such councils existed only in Leh and Kargil. The move follows the creation of five new districts — Drass, Sham, Nubra, Changthang and Zanskar — in April.

• The administration argues that the two initiatives are complementary. Section 3 of the Ladakh Autonomous Hill Development Council Act provides for the constitution of a council in every district through government notification, and officials say the creation of seven districts logically necessitates seven councils.

• The government also points to Ladakh’s unique geography. Spread across nearly 60,000 sq km but home to barely 3 lakh people, it is India’s largest Union Territory by area and among its least densely populated regions. Many villages are separated by mountain passes and several hours of travel, making decentralised administration a longstanding demand.

Do You Know:

• Civil society leaders argue that once seven hill councils, Panchayati Raj institutions, the Union Territory administration and a future Article 371 representative body all coexist, the lines of political accountability may become blurred. “With so few people and so many representative institutions, what meaningful role will eventually remain for the territorial government? And where does Panchayati Raj fit into this?” a Ladakh leader associated with the negotiations asked.

• The 1997 Act makes them responsible for district planning and development, preparation of budgets and district plans, implementation of development schemes, management of land vested in the councils, collection of certain local taxes and functioning as the district planning and development board.

• The LAHDCs occupy a middle ground in India’s federal architecture. Unlike Autonomous District Councils under the Sixth Schedule in Assam, Meghalaya, Mizoram and Tripura, they do not enjoy constitutional status, possess independent legislative powers or exercise judicial authority over customary matters. Those councils can make laws on subjects such as land, forests, village administration and customary practices, subject to the Governor’s assent.

• The LAHDCs are broadly comparable to statutory autonomous councils in states such as Manipur, though experience there also illustrates the limitations of statutory autonomy. Despite significant powers on paper, Manipur’s hill councils have often complained of financial dependence on the state government and limited administrative control.
The debate over the seven hill councils is therefore about much more than district administration. It is about where democratic authority ultimately resides in Ladakh — in multiple district councils, or in a powerful Union Territory-level representative body under Article 371.

Other Important Articles Covering the same topic:

📍Ladakh’s all 7 dists to get autonomous hill development councils: Chief Secy

Previous year UPSC Prelims Question Covering similar theme:
5) Under which Schedule of the Constitution of India can the transfer of tribal land to private parties for mining be declared null and void? (UPSC CSE, 2019)
(a) Third Schedule
(b) Fifth Schedule
(c) Ninth Schedule
(d) Twelfth Schedule

Previous year UPSC Mains Question Covering similar theme:
📍Why are the tribals in India referred to as ‘the Scheduled Tribes? Indicate the major provisions enshrined in the Constitution of India for their upliftment.(2016)

In China’s new ballistic missile test, the worries for Indo-Pacific region

Syllabus:

Preliminary Examination: Current events of national and international importance.

Main Examination: General Studies II: Effect of policies and politics of developed and developing countries on India’s interests

What’s the ongoing story: China tested its sea-based long-range intercontinental ballistic missile (ICBM) last week (July 6), marking its first-ever test of a submarine-based ballistic missile in international waters.

Key Points to Ponder:

• What is Intercontinental ballistic missile?

• Which countries have intercontinental ballistic missile?

• What is known about this missile test?

• Why is Beijing testing now?

• Do these developments mean China’s nuclear strategy has changed?

• What are the implications for Indo-Pacific regional actors, including India?

Key Takeaways:

• Equally importantly, this is the People’s Liberation Army’s (PLA) second launch of a ballistic missile in international waters since 1980. China conducted a land-based ICBM test using the Dong Feng or DF-31 delivery system on September 21, 2024.

• The latest test missile was reportedly launched from a PLA Navy Jin-class Type 094 submarine based in the South China Sea. It was carrying a dummy warhead that covered a distance of 7,300 km, reportedly flying over the Philippines, before landing in the Southern Pacific Ocean.

Do You Know:

• The dummy warhead landed within an area designated under the Treaty of Rarotonga’s South Pacific nuclear-free zone (where testing or stationing of nuclear explosive devices is barred), after it flew over the Exclusive Economic Zones of Micronesia, Nauru, Kiribati, and Tuvalu.

• It is extremely difficult to determine if the missile was Ju Lang 2 (JL-2) or the latest Ju Lang 3 (JL-3). Both JL-2 and JL-3 are submarine-launched ICBMs, jointly developed with DF-31 and DF-41, respectively. ICBMs generally have a range of at least 5,000 km, and the JL-2 is capable of travelling 8,000-9,000 km, while the JL-3 reportedly has a range of over 9,000 km.

• Both delivery systems can be paired with China’s current Type 094 SSBNs (nuclear-powered submarines with ballistic missiles). Based on the reported distance this warhead travelled, it is difficult to precisely determine which delivery system was used.

• But there was a possibility that China could have tested twice or used an alternative route. That is because, like any other country, China issues a navigation warning before missile tests or military exercises. This time, the warning notification suggests that they were considering two testing routes: (i) The one used by launching from the South China Sea towards the Southern Pacific Ocean, and (ii) A proposed launch from the Bohai Sea in the northeast and over Japan into the Pacific Ocean.

• Since the turn of the decade, and especially in the past two years, Beijing has not shied away from overtly tom-tomming its improving nuclear capabilities.

Other Important Articles Covering the same topic:

📍China This Week | What 3 new developments in China’s military and space sectors reveal

Previous year UPSC Prelims Question Covering similar theme:
6) Consider the following statements: (UPSC CSE, 2023)
1. Ballistic missiles are jet-propelled at subsonic speeds throughout their flights, while cruise missiles are rocket powered only in the initial phase of flight.
2. Agni-V is a medium-range supersonic cruise missile, while BrahMos is a solid-fuelled intercontinental ballistic missile.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

 

PRELIMS ANSWER KEY

1.(b)  2.(c)  3.(d) 4.(a) 5.(b) 6.(d)

  

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