UPSC Key: Russia’s oil trade, Engaging with Taliban, and Viksit Bharat by 2047

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: Scott Bessent, United States President-elect Donald Trump’s pick for Treasury Secretary, said on Thursday that the Joe Biden administration had been “too weak” on Russia’s oil sector, and that he was ready to tighten sanctions further — a statement that pushed up global oil prices.

Key Points to Ponder:

• Why has the US imposed curbs on Russian oil?

• What is the status of India’s dependence on Russian crude oil? How is the curb going to impact India?

• What is India’s dependence on the international market for crude oil?

• What is rupee internationalisation?

Key Takeaways:

• On January 10, the Biden administration announced fresh curbs against Russia’s oil trade, placing as many as 183 tankers, constituting the bulk of the so-called “shadow fleet” delivering to customers such as India and China, under sanctions.

• Unlike earlier sanctions on Russian entities, which were relatively easier to circumvent, the new action is far more targeted, and will hurt Indian imports of Russian oil, government officials said.

• While other sources of oil are available to India, there are obvious advantages, in terms of reliability and cheaper rates, in imports from Russia, officials said.

• India, the world’s third-largest consumer of crude oil, depends on imports to meet more than 85% of its requirement. Russia was a marginal supplier before the war in Ukraine began in February 2022; it is now India’s biggest supplier of crude. In 2024, Russian oil accounted for nearly 38% of India’s total oil imports, according to tanker data.

• Tighter sanctions on Russian oil will also complicate India’s efforts to internationalise the rupee.

• India and Russia have been in talks to settle a portion of the oil trade in the domestic currency. While the rupee trade has not taken off as desired, similar efforts have worked in China’s case — the booming Russia-China trade in non-dollar exchange has helped the yuan increase its footprint globally.

• During his Senate hearing, Bessent said that the US dollar “should” remain the world’s reserve currency. Trump had earlier threatened Brazil, Russia, India, China, and South Africa (BRICS nations) with 100% tariffs if they created a new BRICS currency or backed any other to replace the US dollar as the world’s reserve currency.

• International trade experts have noted that the attempts to move away from the dollar began after the US threw Russia out of the Society for Worldwide Interbank Financial Telecommunication (SWIFT), the key to international financial transactions, in 2022.

Do You Know:

• Internationalisation is a process that involves increasing the use of the rupee in cross-border transactions.

• It involves promoting the rupee for import and export trade and then other current account transactions, followed by its use in capital account transactions. These are all transactions between residents in India and non-residents.

• The internationalisation of the currency, which is closely interlinked with the nation’s economic progress, requires further opening up of the currency settlement and a strong swap and forex market.

• More importantly, it will require full convertibility of the currency on the capital account and cross-border transfer of funds without any restrictions. India has allowed only full convertibility on the current account as of now.

• Currently, the US dollar, the Euro, the Japanese yen and the pound sterling are the leading reserve currencies in the world. China’s efforts to make its currency renminbi has met with only limited success so far.

• The use of the rupee in cross-border transactions mitigates currency risk for Indian businesses. Protection from currency volatility not only reduces the cost of doing business, it also enables better growth of business, improving the chances for Indian businesses to grow globally.

Other Important Articles Covering the same topic:

📍Internationalisation of rupee: Why and what are the benefits?

📍Trump threat to BRICS over ditching the dollar

Previous year UPSC Prelims Question Covering similar theme:

(1) Convertibility of rupee implies (2015)

(a) being able to convert rupee notes into gold

(b) allowing the value of rupee to be fixed by market forces

(c) freely permitting the conversion of rupee to other currencies and vice versa

(d) developing an international market for currencies in India

Engaging with the Taliban

Syllabus:

Preliminary Examination: Current events of national and international importance

Mains Examination: General Studies-II: India and its neighbourhood- relations.

What’s the ongoing story: Back in 2000, following a meeting with Mullah Abdul Salam Zaeef, the Taliban envoy to Pakistan, Vijay K Nambiar, India’s High Commissioner to Islamabad at the time, assessed the chances of engagement with the regime in Kabul as bleak.

Key Points to Ponder:

• What are the major concerns of India concerning Afghanistan?

• What were the recent developments in Afghanistan?

• Why is India re-engaging with the Taliban regime?

• Afghanistan’s geopolitical significance extends far beyond India and Pakistan. Elaborate.

• What is the significance of Afghanistan for India?

Key Takeaways:

• A quarter century later, India’s Foreign Secretary Vikram Misri last week led a delegation of senior Indian diplomats at a substantive meeting in Dubai with Amir Khan Muttaqi, Foreign Minister of the second Taliban regime.

• The meeting was the culmination of the incremental progress of India’s “cautious engagement” with the Taliban who took power in Kabul after the Ashraf Ghani government collapsed three and a half years ago.

• On August 31, 2021, hours after the last US military aircraft left Afghanistan, India made its first official contact with the Taliban – at the request of the new rulers in Kabul.

• After the Taliban announced a Cabinet with very little representation for ethnic minorities and without any woman, India called for an “inclusive dispens ation”. As an “immediate neighbour and a friend to [the Afghan] people”, the situation was of “direct concern” to India, New Delhi said.

• In December 2021, India sent 1.6 tonnes of essential medicines to Afghanistan, signalling a political call taken in New Delhi to see the ruling regime separate from the people of Afghanistan, while also opening a window to engage with the Taliban.

• In December 2022, India expressed concern over the banning of women from universities, and renewed its call for an inclusive government that ensures equal rights for women and girls in all aspects of Afghan society.

• In October 2023, the Afghan embassy in New Delhi ceased operations citing paucity of resources and personnel, and the failure to “meet expectations…to serve the best interests of Afghanistan”.

• In their conversations with key Taliban leaders, Indian officials have got the sense that the Taliban are “ready to engage”, and are looking for assistance to rebuild the country’s infrastructure.

• On its part, New Delhi would not like to be left behind other countries, including China, who are making significant inroads in Afghanistan.

• The regional and global context has been highly dynamic since the Taliban came to power. Afghanistan’s neighbour Iran has been weakened considerably, Russia is fighting its own war, and the US awaits the return of Donald Trump to the White House.

• India, which has been watching the state of play, has concluded that this is the time to upgrade the level of official engagement — if it is to not lose its years of investment in Afghanistan. India’s core concern remains security — to ensure that no anti-India terrorist group is allowed to operate from Afghan territory.

Do You Know:

• Afghanistan’s geopolitical significance extends far beyond India and Pakistan. It is a multi-ethnic, landlocked country that has been at the centre of global politics primarily because of its location — its proximity to Central Asia, the Middle East and South Asia. Its unique location has always attracted the interest of major global as well as regional powers.

• Afghanistan served as a buffer zone during the 19th-century tussle between Czarist Russia and imperial Britain. During the Cold War, Afghanistan was at the centre of a rivalry between the US and USSR. In the post-9/11 “war on terror”, Afghanistan was again at the centre of geopolitics. Global powers have used Afghanistan as a tool to serve their national interests.

• But the relationship between India and Afghanistan is ancient. It can be traced back to the Indus Valley civilisation. The bedrock of the relationship, post India’s independence, is the Treaty of Friendship that was signed on January 4, 1950.

• India has diligently crafted its policy towards Afghanistan by maintaining a balance between serving its national interest and at the same time meeting the needs of the Afghani population, showing its uncompromising conviction towards democratic values and humanitarian assistance.

• It was only when the Taliban rose to power during the 1990s with the backing of Pakistan’s ISI (Inter-Services Intelligence) that the relationship was affected. It further deteriorated after the hijacking of an Indian Airlines Flight IC814 in Kandahar in 1999.

• But it got back on track with the partial restoration of democracy in 2001 when Hamid Karzai became the country’s president. India again got involved in the reconstruction of Afghanistan across various sectors, including infrastructure, defence, health and education.

Other Important Articles Covering the same topic:

📍India-Taliban talks: Region in flux and 5 reasons behind Delhi’s decision to engage Kabul

📍India’s meeting with the Taliban is part of its commitment towards the Afghan people

Previous year UPSC Prelims Question Covering similar theme:

(2) Consider the following countries: (2022)

1. Azerbaijan

2. Kyrgyzstan

3. Tajikistan

4. Turkmenistan

5. Uzbekistan

Which of the above have borders with Afghanistan?

(a) 1, 2 and 5 only

(b) 1, 2, 3 and 4 only

(c) 3, 4 and 5 only

(d) 1, 2, 3, 4 and 5

 

FRONT

Army Vice-Chief flags 2047 agenda: Social, communal harmony, manufacturing, jobs

Syllabus:

Preliminary Examination: Current events of national and international importance

Mains Examination: General Studies-III: Role of external state and non-state actors in creating challenges to internal security; Security challenges and their management in border areas – linkages of organized crime with terrorism.

What’s the ongoing story: Vice-Chief of Army Staff Lt General N S Raja Subramani Friday said that India’s manufacturing sector, lack of adequate employment opportunities and the human development index, apart from the unsettled borders, were among the country’s weaknesses that need to be fixed to fulfil the vision of Viksit Bharat by 2047.

Key Points to Ponder:

• What is the vision of Viksit Bharat by 2047?

• What is the role of the Army in achieving the vision of Viksit Bharat?

• What are the internal security challenges?

• What are the external security challenges for India?

• What are the challenges in border areas in recent times?

• What is the significance of theaterisation?

Key Takeaways:

• Lt General Subramani said that to become Viksit Bharat by 2047 the country should aim to settle the borders and have “social and communal harmony” within.

• Now about the weaknesses. First, the change in environment (climate); second, our manufacturing sector which is not as strong; third, we don’t have that many employment opportunities… our borders, be it with China or Pakistan are not developed. We also need to improve our human development index),” he said.

• On internal security, he said that after the abrogation of Article 370, Jammu & Kashmir had seen more than 60 per cent turnout in the Assembly elections.

• For external security, Lt General Subramani said it should be ensured that the immediate neighbourhood stays economically connected with India.

• “By 2047, we will focus on defence manufacturing sectors including arms and weapons and we will also export to other countries,” he said.

Do You Know:

• India’s defence ecosystem has undergone transformations in several key areas in recent years. Key institutional and policy changes have spurred defence indigenisation, domestic capital procurement and defence exports.

• The goal of a Viksit Bharat (developed India) by 2047 requires the defence sector to be more resilient and self-reliant. The transformation underway in the defence industrial complex has set the stage for multiple stakeholders to rally and promote domestic technological innovation while cementing strategic partnerships around the world.

• As three frontline vessels were commissioned (15th January 2025) together into the Indian Navy, a historic first for the country, Prime Minister Narendra Modi said that India is going to play a major role in giving direction to “global security, economics and geopolitical dynamics”. He also said the country works “in the spirit of development, not expansionism”.

• The vessels that have entered the Navy are the destroyer INS Surat, the last of the four Visakhapatnam-class stealth guided-missile destroyers; the frigate INS Nilgiri, the lead ship of a new class of seven stealth guided-missile frigates being built under Project 17 Alpha; and, the submarine INS Vagsheer, the sixth and the last of the first batch of the Kalvari-class diesel-electric attack submarines.

Other Important Articles Covering the same topic:

📍PM Modi commissions INS Surat, INS Nilgiri and INS Vaghsheer

📍India’s atmanirbhar defence sector

Previous year UPSC Prelims Question Covering similar theme:

(3) What is “Terminal High Altitude Area Defense (THAAD)”, sometimes seen in the news? (UPSC CSE 2018 Prelims)

(a) An Israeli radar system

(b) India’s indigenous anti-missile programme

(c) An American anti-missile system

(d) A defence collaboration between Japan and South Korea.

Previous year UPSC Mains Question Covering similar theme:

Analyse the multidimensional challenges posed by external state and non-state actors, to the internal security of India. Also discuss measures required to be taken to combat these threats. (UPSC CSE 2021)

This year, President’s At Home ‘will sound, taste, feel like South India’

Syllabus:

Preliminary Examination: Current events of national and international importance

Mains Examination: General Studies-I: Indian culture will cover the salient aspects of Art Forms, literature and Architecture from ancient to modern times.

What’s the ongoing story: The at Home event at Rashtrapati Bhavan on Republic Day this year will have a southern flavour. With President Droupadi Murmu keen on showcasing the cultural diversity of the country, the five states of the South will feature big, right from the welcome programme to the artistes featured and part of the guest list and cuisine, sources said.

Key Points to Ponder:

• What is the One District One Product?

• What is the GI (Geographical Indication) scheme?

• What is the importance and purpose of the GI tag?

• What is drone didis?

• What are the various schemes launched by the government to promote art and culture in India?

• How does culture play a role in promoting soft diplomacy?

• Read about the following products: Ikat, Etikoppaka toys, Ganjifa art, Kancheepuram silk , and Kalamkari.

Key Takeaways:

• The invites sent out for the At Home, which is hosted by the President every January 26 evening, include, for example, a roll-up pencil pouch made of Pochampally Ikat fabric (Telangana), colourful hand-made wood and lacquer Etikoppaka toys (Andhra Pradesh), a hand-painted fridge magnet that depicts Ganjifa art (Karnataka), a pouch made of Kancheepuram silk (Tamil Nadu), and a screw-pine weaved bookmark (Kerala). The items are enclosed in a bamboo box with Kalamkari (Andhra) motifs.

• The invite adds that the aim is to “spotlight local expertise, through products featuring in the ODOP (One District One Product) and GI (Geographical Indication) schemes” of the government, with sources calling it an attempt to also ensure geographical inclusiveness.

Do You Know:

• Geographical Indications of goods refer to the place of origin of a product. Such tags are accorded as they convey an assurance of quality and distinctiveness, attributable to the fact of its origin in a specific geographical locality, region or country.

• In India, the Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry, awards GIs.

• A GI registration is given to an area, not a trader, but once a product gets the registration, traders dealing in the product can apply to sell it with the GI logo. Authorised traders are each assigned a unique GI number.

• If any unauthorised trader tries selling the product under that name, they can be prosecuted under The Geographical Indications of Goods (Registration and Protection) Act, 1999.

Other Important Articles Covering the same topic:

📍From red ant chutney to black rice, the 7 Odisha products that have bagged GI tags

📍GI tag for Majuli masks of Assam: History, cultural significance of the centuries-old art form

Previous year UPSC Prelims Question Covering similar theme:

(4) Which of the following has/have been accorded ‘Geographical Indication’ status? (2015)

1. Banaras Brocades and Sarees

2. Rajasthani Daal-Bati-Churma

3. Tirupathi Laddu

Select the correct answer using the code given below:

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Previous year UPSC Mains Question Covering similar theme:

Safeguarding the Indian art heritage is the need of the moment. Discuss. (2018)

 

EDITORIAL

Incentives, not resources

Syllabus:

Preliminary Examination: General issues on Environmental Ecology, Biodiversity and Climate Change – that do not require subject specialisation

Mains Examination: General Studies-III: Indian Economy and issues relating to planning, mobilisation, of resources, growth, development and employment

What’s the ongoing story: Ashima Goyal writes: Development and structural reforms tend to dominate thinking on macroeconomic policy in India, which is understandable given the growth imperative. Post the pandemic macroeconomic policy helped induce a robust recovery by effectively smoothing external shocks — the cycle also affects growth.

Key Points to Ponder:

• What is fiscal consolidation?

• What is the Current Account Deficit?

• What is a K-shaped recovery?

• What are the recent tax reforms introduced by the government?

• How resources are prioritised in an economy?

• What is the purpose of the budget?

• What are the challenges of the Indian economy?

Key Takeaways:

• Slowing government spending during the election months is one reason for the slowdown in the economy. It should certainly meet its spending targets but continuing fiscal consolidation is also essential since India’s combined fiscal deficit is above 7 per cent of GDP — one of the highest in the world.

• Interest payments eat up as much as 19 per cent of the Centre’s expenditure. Falling debt and deficit ratios are required to build fiscal space, reduce risk premia and interest rates spreads.

• Since the slowdown followed that in public investment, despite revenue expenditure being maintained, it is clear that better quality of spending itself provides stimulus — so increasing the share of public investment must continue.

• Corporate investment has not risen much despite tax cuts, showing that resources alone do not deliver. High growth and profits have raised the ratio of private corporate savings from around 1 per cent of GDP before the 1990s to an average of 10.7 per cent after 2005-06.

• The budget could consider a tax on non-business income offset by an investment tax credit, in addition to inducements to raise employment.

• Just as domestic savings are underutilised, so are foreign savings. Inflows to the economy normally exceed our current account deficit, which is the excess of investment over savings financed by foreign savings. So it is investment, not resources, that is the constraint government has to act on.

• Income tax cuts for lower slabs can further increase their spending and faster than the government can spend. It is also fair since inflation increases real taxes while eroding real incomes. But the main focus of tax reform must continue to be on simplification, removing loopholes and increasing the base.

• Last year the budget had proposed a framework for better coordination with states. Food supply should be a focus area. Another is simplifying regulations.

• As cost push inflation falls, interest rates can come down. Low real interest rates are one of the most effective incentives to increase demand, with the large number of India’s young buying houses and equipping them.

• Budget priorities, to be aligned to the needs of the economy, must facilitate an improvement in conditions of production, so more can be produced and made available at lower prices. Just resources will not achieve results, well-designed incentives are essential.

Do You Know:

• A Budget is essentially an exercise where the government tells the Parliament (and through it, the whole country) about the health of its finances. This means coming clean on three main things: income, expenditure and borrowing.

• Budget tells the citizens not only how much money the government raised last year, where did it spend it, and how much did it have to borrow to meet the gap but also gives an estimate about what it expects to earn in the next financial year (in the present case, the current financial year), how much and where it plans to spend it, and how much would it likely have to borrow to bridge the gap.

• An average Indian citizen might wonder why he or she needs to be concerned with the government’s finances. After all, they may argue, it is not their money. It is because of this inadequate understanding of the Budget that most of the public interest in this annual exercise is limited to either seeking some tax relief or some kind of cash handout from the government.

Other Important Articles Covering the same topic:

📍Explained: Dummies’ guide to the Budget

📍Budget 2024-25: A five-year roadmap for India’s economy

Previous year UPSC Mains Question Covering similar theme:

(5) With reference to Balance of Payments, which of the following constitutes/constitute the Current Account? (2014)

1. Balance of trade

2. Foreign assets

3. Balance of invisibles

4. Special Drawing Rights

Select the correct answer using the code given below.

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 4 only

 

EDITORIAL

It’s not your BMI, stupid

Syllabus

Preliminary Examination: Current events of national and international importance

Mains Examination: General Studies-II: Issues relating to the development and management of Social Sector/Services relating to Health, Education, Human Resources.

What’s the ongoing story: Pooja Pillai writes: From .gov websites to neighbourhood gyms, calculating one’s BMI is presented as the first step towards better health. The higher the BMI, the greater the obesity and the more the need for interventions like exercise and diet control — maybe even drugs and surgery. Simple. But also, as it turns out, not so simple.

Key Points to Ponder:

• What is BMI? How is it calculated?

• What is obesity and how is it different from overweight?

• What are the initiatives taken by the government to promote a healthy lifestyle?

• What are the health challenges for people in India?

• BMI provides a reliable picture of health. Critically analyse.

Key Takeaways:

• A report published in the Lancet Diabetes and Endocrinology journal has called for an overhaul of our understanding of obesity, citing an over-reliance on BMI, which has had the peculiar effect of leading to both underdiagnosis and overdiagnosis of the condition.

• This is because BMI does not provide a reliable picture of health: Neither is it a direct measure of fat, nor does it give accurate information about how fat is distributed in an individual’s body. It frequently fails to capture the true state of health of a person who may have excess body fat, while having “healthy” BMI.

• Rethinking the overreliance on BMI is long overdue, not least because of how it has been misused to reduce conversations about health to mere numbers on a scale. It has played a role in perpetuating myths about what a healthy or fit person looks like (thin) as against one who is not (overweight), with associated sub-myths that attach subjective values like beauty, worth and efficiency to an individual’s appearance.

• What the Lancet report underlines, in fact, is how little we understand about the combination of bones, flesh and blood that is the mortal coil — and by extension, how limited our understanding is about the actual state of our bodies.

• Every individual is a unique constellation — not only of genes and other biological variables, but also socio-economic conditions, habits and that most unreliable factor known as luck.

• Can the Lancet report’s call for a nuanced approach to identifying obesity — endorsed by over 75 medical organisations from around the globe — help dispel some of the myths we cling to, including the reliability of mere numbers?

Do You Know:

• India has seen a steady increase in obesity levels — not only in adults but children too — over the last 32 years. At the same time, the prevalence of undernutrition has also remained high in the country. As a result, India has become one of the countries with a high “double burden,” according to a new Lancet study, which examined the trends of malnutrition across the world over the last 32 years.

• According to the World Health Organisation (WHO), obesity is an abnormal or excessive accumulation of fat that poses health risks. Adults — anyone over the age of 20 years — are considered to be obese, if they have a body mass index (BMI) of 30 kg/m2 or more.

• BMI is a person’s weight in kilograms divided by the square of height in meters, according to the Centers for Disease Control and Prevention. School-aged children and adolescents — anyone between the ages of 5 and 19 years — are considered obese, if their BMI is two standard deviations more than the mean.

• Underweight is one of the four broad sub-forms of undernutrition. An adult is considered underweight if their BMI is less than 18 kg/m2. School-aged children and adolescents are considered underweight if their BMI is two standard deviations below the mean.

Other Important Articles Covering the same topic:

📍Obesity on the rise, high levels of undernutrition persist in India: What a new study says

📍A big fat problem

Previous year UPSC Prelims Question Covering similar theme:

(6) Which of the following is/are the indicators/ indicators used by IFPRI to compute the Global Hunger Index Report? (2016)

1. Undernourishment

2. Child stunting

3. Child mortality

Select the correct answer using the code given below:

(a) 1 only

(b) 2 and 3 only

(c) 1, 2 and 3

(d) 1 and 3 only

 

GOVT & POLITICS

Nuclear deal: India hails lifting of US curbs on three entities

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: India Friday welcomed the US move to lift restrictions on three Indian nuclear entities, saying the move will open new avenues for collaboration in the civil nuclear field.

Key Points to Ponder:

• What is the US Entity list?

• What is the India-US civil Nuclear deal?

• What is the 123 Agreement?

• What is Nuclear energy?

• What is the significance of the India-US Nuclear deal?

• What is the Nuclear Non-Proliferation Treaty (NPT)?

• What are the ‘International Atomic Energy Agency’ safeguards?

Key Takeaways:

• The US had Wednesday removed restrictions on Bhabha Atomic Research Centre (BARC), Indira Gandhi Atomic Research Centre (IGCAR) and Indian Rare Earths (IRE).

• The decision came over a week after NSA Jake Sullivan announced that Washington was finalising steps to “remove” hurdles for civil nuclear partnership between Indian and American firms.

• “These (BARC, IGCAR and IRE) were in the entity list of the US for several years now. With this action by the US government, it will lead to greater collaboration between India and the US in the field of nuclear energy and also in the field of critical minerals,” he said.

• Certain clauses in India’s nuclear liability norms have emerged as hurdles in moving forward in implementation of the historic India-US civil nuclear deal that was firmed up around 16 years back.

• The removal of restrictions on the three key Indian entities is being seen as an attempt by the outgoing Biden administration to facilitate the implementation of the landmark India-US civil nuclear pact.

• India and the US unveiled an ambitious plan to co-operate in civil nuclear energy in July 2005 following then Prime Minister Manmohan Singh’s meeting with American President George W Bush.

Do You Know:

• On the American side, a significant impediment is the ‘10CFR810’ authorisation (Part 810 of Title 10, Code of Federal Regulations (Part 810) of the US Atomic Energy Act of 1954), which gives US nuclear vendors the ability to export equipment to countries such as India under some strict safeguards, but does not permit them to manufacture any nuclear equipment or perform any nuclear design work here.

• This authorisation is a clear impediment from New Delhi’s perspective, which wants to participate in the manufacturing value chain and co-produce the nuclear components for atomic power projects being jointly planned to be set up in India, sources said.

• On the Indian side, the Civil Liability for Nuclear Damage Act, 2010, which sought to create a mechanism for compensating victims from damage caused by a nuclear accident, and allocating liability and specifying procedures for compensation, has been cited as an impediment by foreign players such as GE-Hitachi, Westinghouse and French nuclear company Areva (now called Orano).

• This is primarily on the grounds that the legislation channelises operators’ liability to equipment suppliers with foreign vendors citing this as a reason for worries about investing in India’s nuclear sector due to fear of incurring future liability.

• A breakthrough agreement on iCET that addresses the concerns on both sides could pave the way for plans to jointly manufacture nuclear components for any new project capacity being planned for India by deploying American atomic reactors.

• This also comes when India is hoping to pitch itself as a credible destination to manufacture nuclear reactors, especially small modular reactors or SMRs that have a capacity of between 30MWe and 300 MWe, cost-effectively and at scale.

• Though India’s civil nuclear programme has expertise in manufacturing smaller reactor types — 220MWe PHWRs (pressurised heavy water reactors) and above – the problem for India is its reactor technology. Based on heavy water and natural uranium, the PHWRs are increasingly out of sync with light water reactors (LWR) that are now the most dominant reactor type across the world.

Other Important Articles Covering the same topic:

📍Boosting Indo-US nuclear collaboration: the need, two key hurdles

Previous year UPSC Prelims Question Covering similar theme:

(7) In India, why are some nuclear reactors kept under “IAEA safeguards” while others are not? (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

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PRELIMS ANSWER KEY

1. (c)  2. (c)  3. (c)   4. (c)  5. (c)  6. (c)  7. (b)

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