Why in the News?

U.S. Vice-President J.D. Vance recently mentioned that the U.S. is ready to work more closely with India on energy and defense.

What are the main areas of India-U.S. cooperation?

• Energy Security: Strengthening access to sustainable, reliable, and affordable energy resources is central to India-U.S. ties. Eg: In 2024, both countries signed an MoU to diversify supply chains for critical minerals like lithium and rare earths, crucial for clean energy and EV technologies.
• Defence and Technology Cooperation: Enhancing strategic and technological collaboration helps address common security challenges and promote innovation. Eg: Under the iCET framework, India and the U.S. are collaborating on defence co-production and advanced systems, including Small Modular Reactors (SMRs) for civilian nuclear use.
• Mobility and Innovation Exchange: Facilitating people-to-people ties and high-tech partnerships boosts economic growth and shared innovation ecosystems. Eg: India and the U.S. are working to ease skilled labor mobility and co-develop innovation corridors in areas like semiconductors and AI.

Why is a minerals partnership vital for both countries?

• Strategic Resource Security: Critical minerals are essential for clean energy, electronics, and defence, and current supply chains are overly dependent on China. Eg: China controls nearly 90% of global rare earth processing, creating a strategic vulnerability for both India and the U.S.
• Economic and Technological Collaboration: Joint exploration and processing of minerals supports cross-sector innovation and economic resilience. Eg: India and the U.S. signed an MoU in 2024 to co-invest in third-country mineral projects in Africa and South America.
• Supply Chain Diversification: A minerals partnership helps build resilient, transparent, and traceable supply chains to withstand geopolitical shocks. Eg: Proposal for an India-U.S. Mineral Exchange and blockchain-based traceability standards to ensure secure mineral sourcing.

How can nuclear energy help India meet its energy goals?

• Low-Carbon Energy Source: Nuclear energy provides a firm, low-emission alternative to fossil fuels, aiding in decarbonisation efforts. Eg: Nuclear power contributes just over 8 GW currently but is crucial for India’s net-zero by 2070 targets.
• Base Load Power Stability: It ensures continuous electricity supply, complementing the intermittency of solar and wind sources. Eg: Nuclear plants provide uninterrupted power, stabilising the grid as renewable sources fluctuate.
• High Energy Output with Small Land Use: Nuclear energy offers high output per unit of land, which is vital in land-scarce regions. Eg: Small Modular Reactors (SMRs) have lower land requirements and are suitable for water-scarce areas due to air-cooling.
• Industrial Decarbonisation Support: Nuclear power can drive clean energy transitions in sectors like steel and AI-based data centres. Eg: SMRs can power green steel manufacturing and meet rising energy needs of AI infrastructure.
• Strategic Energy Independence: Reducing reliance on fossil fuel imports enhances national energy security. Eg: With a 100 GW nuclear target by 2047, India aims to lower its dependence on imported oil and coal.

Which reforms are key to expanding India’s nuclear capacity?

• Faster Deployment and Standardisation: Accelerate construction timelines and adopt standardized reactor designs to lower costs and ensure quick scaling of nuclear energy capacity. Eg: Reducing construction time from 9 to 6 years could reduce electricity costs by 8%, helping India meet its 2047 nuclear capacity goal.
• Private Sector Involvement: Facilitate private investments by providing clear incentives and long-term purchase commitments, especially for Small Modular Reactors (SMRs). Eg: SMRs, with lower capital expenditure and land requirements, become financially viable when supported by private capital and stable offtake agreements.
• Legislative and Policy Reforms: Amend existing laws to encourage private investment in nuclear energy and enhance the ease of doing business in this sector. Eg: Amending the Civil Liability for Nuclear Damage Act, 2010, would allow private companies to participate in nuclear projects, boosting investment and technological growth.

Way forward: 

• Enhanced Public-Private Partnerships: Encourage greater private sector participation through incentives, policy clarity, and long-term contracts, especially for emerging technologies like Small Modular Reactors (SMRs). This will drive innovation, investment, and rapid scaling of nuclear energy.
• Strengthen International Collaboration and Technology Transfer: Expand partnerships with global leaders in nuclear technology to accelerate the adoption of advanced reactors and improve operational efficiency, positioning India as a global leader in clean nuclear energy.

Mains PYQ:

[UPSC 2013] With growing scarcity of fossil fuels, the atomic energy is gaining more and more significance in India. Discuss the availability of raw material required for the generation of atomic energy in India and in the world.

Linkage: Nuclear energy as a “next frontier” for India-U.S. linkages and a reliable source complementing renewables. This question directly addresses the significance and resources for atomic/nuclear energy in India.

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