MAINS Current Affairs includes India’s Nuclear Energy Push: Roadmap to 100 GW Capacity by 2047 & India–Sri Lanka Economic Cooperation

ENERGY

1. India’s Nuclear Energy Push: Roadmap to 100 GW Capacity by 2047

Context: According to a report by The Energy and Resources Institute, India will require investments of nearly ₹23–25 lakh crore to achieve its target of 100 GW nuclear energy capacity by 2047.

• The roadmap emphasises regulatory reforms, faster project execution, and deployment of Small Modular Reactors (SMRs).

Why Nuclear Energy Matters for India

Growing Energy Demand

• India’s expanding economy and population are increasing the demand for:
  • Reliable electricity
  • Clean energy
  • Industrial power supply
  • Energy security
• While renewable energy is growing rapidly, solar and wind remain intermittent.

Role of Nuclear Energy

Nuclear power provides:

• Continuous baseload electricity
• Low-carbon energy generation
• Grid stability during non-solar hours
• Support for green hydrogen and green ammonia production
• According to the Central Electricity Authority (CEA), nuclear energy will become increasingly important as renewable energy penetration rises.

Current Status of Nuclear Energy in India

Existing Capacity

• India currently operates:
  • 25 nuclear reactors
  • Around 8.8 GW installed capacity
  • Across 7 nuclear power sites

Future Pipeline

• Planned and ongoing projects may increase capacity to nearly 22 GW by 2032.
• However, achieving 100 GW by 2047 requires a much faster expansion strategy.

Small Modular Reactors (SMRs)

What are SMRs?

• SMRs are compact nuclear reactors featuring:
  • Smaller generation capacity
  • Modular construction
  • Factory-based manufacturing
  • Faster deployment timelines
• They are considered more flexible and cost-effective than conventional large reactors.

Advantages of SMRs

Faster Construction

• Factory manufacturing reduces delays and cost overruns.

Lower Initial Investment

• Phased investments reduce financial risks.

Flexible Deployment

• Suitable for:
  • Industrial hubs
  • Remote regions
  • Smaller grids
  • Data centres

Multi-purpose Applications

SMRs can support:

• Hydrogen production
• Desalination
• Industrial heating
• District heating systems

India’s Indigenous SMR Programme

India is developing:

• 200 MWe Bharat Small Modular Reactor
• 55 MWe reactor
• 5 MWth High Temperature Gas-Cooled Reactor

Budgetary Support

• The Union Budget 2025–26 allocated ₹20,000 crore for SMR research and deployment.

Target

• Operationalise five indigenous SMRs by 2033.
• This aligns with the Atmanirbhar Bharat vision for strategic technology self-reliance.

India’s Three-Stage Nuclear Programme

• India’s long-term nuclear strategy was proposed by Homi Jehangir Bhabha.

Stage 1

• Pressurised Heavy Water Reactors (PHWRs) using natural uranium.

Stage 2

• Fast Breeder Reactors using plutonium.

Recent Development

• The Prototype Fast Breeder Reactor (PFBR) at Kalpakkam achieved criticality in 2026.

Stage 3

• Thorium-based reactors for long-term fuel sustainability.
• India possesses one of the world’s largest thorium reserves, making this stage strategically important.

Global Developments in SMRs

• More than 120 SMR designs are under development worldwide.

Leading Countries

• United States
• Canada
• China
• Russia
• France
• United Kingdom
• Global investment in SMRs is rising rapidly.

Challenges in Achieving the 100 GW Target

Regulatory Bottlenecks

• India’s nuclear regulatory framework was designed mainly for large reactors.

Required Reforms

• Faster licensing procedures
• SMR-specific regulations
• Quicker environmental clearances
• Public-private partnership frameworks
• The Atomic Energy Act may require modernisation to accommodate private participation.

Financing Constraints

• Nuclear projects involve:
  • High upfront costs
  • Long gestation periods
  • Financial risks from delays
• TERI estimates investment needs at ₹23–25 lakh crore by 2047.

Fuel Security Concerns

• India produces only around 600 tonnes of uranium annually despite substantial reserves.

Import Dependence

• India imported over 18,800 tonnes of uranium products between 2008–09 and 2024–25.
• Long-term fuel security remains a major challenge.

Workforce & Technology Gaps

• Rapid expansion requires:
  • Skilled nuclear engineers
  • Safety experts
  • Advanced manufacturing ecosystems

Public Acceptance & Safety Concerns

• Incidents such as:
  • Fukushima nuclear disaster
  • Chernobyl disaster

continue to shape public concerns regarding nuclear safety.

Way Forward: TERI’s Recommended Roadmap

Phase 1

• Regulatory reforms
• Pilot SMR projects
• Institutional strengthening

Phase 2

• Large-scale deployment
• Industrial ecosystem development
• Public-private collaboration

Phase 3

• Integration of advanced reactors
• Thorium-based systems
• Deep industrial decarbonisation

Conclusion

• Nuclear energy is emerging as a critical pillar of India’s long-term clean energy transition.
• Achieving 100 GW nuclear capacity by 2047 will require coordinated reforms in regulation, financing, fuel security, technology, and public engagement.
• Small Modular Reactors have the potential to transform India’s nuclear landscape by enabling flexible, scalable, and low-carbon energy generation.
• If implemented effectively, nuclear power can significantly contribute to India’s Net Zero 2070 goals, energy security, industrial decarbonisation, and the vision of Viksit Bharat 2047.

INTERNATIONAL

2. India–Sri Lanka Economic Cooperation

Context

• The India–Sri Lanka Business Forum, organised by the Confederation of Indian Industry in partnership with The Ceylon Chamber of Commerce, identified key sectors for expanding bilateral economic cooperation.

Key Areas of Economic Cooperation

1. Ports & Maritime Connectivity

• India and Sri Lanka are exploring cooperation in:
  • Port infrastructure
  • Maritime connectivity
  • Regional supply chains
• This is strategically important because Sri Lanka lies close to major Indian Ocean sea lanes.

2. Transport & Logistics

Focus areas include:

• Improved shipping routes
• Rail connectivity
• Warehousing facilities
• Cold storage infrastructure
• These measures aim to improve logistics efficiency and reduce trade costs.

3. Pharmaceuticals

• Sri Lanka is interested in importing affordable generic medicines from India under the existing Free Trade Agreement framework.
• India is one of the world’s largest producers of generic medicines.

4. Digital Payments

• Sri Lanka is exploring cross-border digital payment integration with India using systems similar to Unified Payments Interface (UPI).
• This can improve tourism, remittances, and trade transactions.

5. Travel & Tourism

• Both countries are working to expand tourism through:
  • Better travel connectivity
  • Easier visa facilities
  • Regional tourism circuits
• India remains the largest source of tourists to Sri Lanka.

6. Review of India–Sri Lanka FTA

• The two countries are considering updating the FTA to include:
  • Pharmaceutical raw materials
  • Logistics equipment
  • Trade facilitation measures

Challenges in Bilateral Economic Cooperation

Trade Imbalance

• Sri Lanka has concerns regarding a persistent trade deficit with India.

Regulatory Barriers

• Delays in:
  • Customs clearances
  • Regulatory approvals
    affect trade efficiency.

Infrastructure Constraints

• Limited transport and logistics infrastructure increases transaction costs.

Economic Instability

• Sri Lanka’s recent economic crisis negatively affected investor confidence and economic stability.

Geopolitical Competition

• External powers are competing for influence in strategic sectors such as ports and infrastructure in the Indian Ocean region.

Significance of Sri Lanka for India

Strategic Location

• Sri Lanka is located near critical Sea Lanes of Communication (SLOCs) in the Indian Ocean.
• A large share of India’s:
  • Energy imports
  • Maritime trade
    passes through these routes.

Maritime Security

• Sri Lanka is important under India’s SAGAR (Security and Growth for All in the Region)
• Cooperation helps:
  • Ensure regional stability
  • Counter strategic influence of extra-regional powers
  • Strengthen Indian Ocean security

India–Sri Lanka Relations

Trade Relations

India Sri Lanka Free Trade Agreement (ISFTA)

• Implemented in 2000.
• Significantly expanded bilateral trade.
• India remains one of Sri Lanka’s largest trade partners and investors.

Foreign Direct Investment (FDI)

• India is among the leading contributors of FDI in Sri Lanka across sectors such as:
  • Energy
  • Banking
  • Tourism
  • Infrastructure

Cultural Relations

• The Cultural Cooperation Agreement (1977) forms the basis of bilateral cultural exchanges.

Key Civilizational Links

• Buddhist heritage
• Tamil cultural connections
• Shared historical interactions
• These strengthen people-to-people ties and India’s soft power.

Tourism Cooperation

• India has traditionally been Sri Lanka’s largest tourism source market.

Defence & Maritime Cooperation

Colombo Security Conclave

• Established to strengthen maritime security cooperation in the Indian Ocean region.

Joint Military Exercises

Mitra Shakti

• Joint military exercise between India and Sri Lanka.

Dosti

• Maritime exercise involving regional partners.

SLINEX

• Bilateral naval exercise focused on maritime cooperation.

Multilateral Cooperation

Both countries cooperate through regional organisations such as:

• South Asian Association for Regional Cooperation
• Bay of Bengal Initiative for Multi Sectoral Technical and Economic Cooperation
• South Asia Co-operative Environment Programme

Way Forward

Strengthen Economic Integration

• Upgrade the India–Sri Lanka FTA and improve trade facilitation.

Enhance Connectivity

• Improve maritime, digital, and transport connectivity between the two countries.

Promote Investment

• Encourage private-sector participation in infrastructure and manufacturing.

Deepen Maritime Cooperation

• Expand collaboration on:
  • Maritime security
  • Blue economy
  • Disaster management

Support Sri Lanka’s Economic Recovery

• Continue financial assistance, investment support, and capacity-building initiatives.

Conclusion

• India and Sri Lanka share deep historical, cultural, economic, and strategic ties.
• Strengthening bilateral economic cooperation is essential for regional stability, maritime security, and shared prosperity in the Indian Ocean region.
• Greater connectivity, trade integration, and strategic collaboration can further consolidate the partnership amid evolving regional geopolitical dynamics.

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