💥Join UPSC 2027,2028 Mentorship (July Batch) + XFactor Notes & Microthemes PDF
Talk to Mentor

Civilsdaily

Login

Subject: Economics

  • World Bank Cuts India Growth Forecast to 6.6% for FY 2026-27

    Why in the News?

    The World Bank has revised India’s GDP growth forecast to 6.6% for FY 2026-27, down from 7.2%, citing the impact of the West Asia conflict on energy prices, consumption, and industrial activity.

    Key Highlights

    • New Growth Projection (FY 2026-27): 6.6%
    • Earlier Projection: 7.2%
    • Reason for Revision: Prolonged West Asia conflict affecting global energy supply
    • The World Bank noted that without the conflict, India’s growth would have remained around 7.2%.

    Reasons for Growth Slowdown

    1. Higher Energy Prices

    • India heavily depends on oil and gas imports
    • Rising prices increase: Inflation, Production costs, and Fiscal pressure

    2. Weak Industrial Growth

    • Industrial growth expected to fall: 8.8% → 7.5%
    • Sectors affected: Electronics, Automobiles, and Export oriented industries

    3. Lower Export Demand

    • Gulf region slowdown affects: Trade, Services, and Manufacturing exports

    Additional Risks Identified

    • Reduced remittances from Gulf countries
    • Pressure on rupee
    • Increase in current account deficit
    • Higher inflation
    • Fiscal consolidation challenges
    • Note: 38% of India’s remittances come from Gulf economies
    [2015] Which one of the following issues the ‘Global Economic Prospects’ report periodically? (a) The Asian Development Bank (b) The European Bank for Reconstruction and Development (c) The US Federal Reserve Bank (d) The World Bank

  • Kalpakkam: ‘Critical’ step in 3-stage nuclear programme

    Why in the News?

    India’s Kalpakkam Fast Breeder Reactor has achieved criticality, marking the first time the country has operationalized the second stage of its three-stage nuclear programme. This is significant because it enables production of more fuel than consumed, overcoming uranium scarcity and unlocking India’s vast thorium reserves.

    What is the significance of achieving ‘criticality’ in a Fast Breeder Reactor?

    1. Criticality Achievement: Ensures initiation of a self-sustaining nuclear fission chain reaction; marks transition from testing to operational stage.
    2. Fuel Multiplication: Produces more fissile material (Pu-239) than consumed, unlike conventional reactors; enables long-term sustainability.
    3. Strategic Breakthrough: Establishes India among a limited group of nations with operational breeder technology.
    4. Example: Kalpakkam 500 MWe Prototype Fast Breeder Reactor (PFBR) reaching criticality.

    How does this advance India’s three-stage nuclear programme?

    1. Stage-I (Pressurized Heavy Water Reactors (PHWRs)): Utilizes natural uranium; generates plutonium as by-product.
    2. Stage-II (Fast Breeder Reactors (FBRs)): Uses plutonium fuel; converts fertile U-238 into fissile Pu-239.
    3. Stage-III (Thorium Cycle): Uses U-233 derived from thorium; ensures long-term energy security.
    4. Continuity Link: FBR acts as a bridge between uranium and thorium economy.

    Why are Fast Breeder Reactors crucial for India’s energy security?

    1. Resource Constraint: India has limited uranium but abundant thorium reserves (~25% of world total).
    2. Energy Expansion Target: Increases nuclear capacity from 8,180 MWe to 22,480 MWe by 2032.
    3. Fuel Efficiency: Enhances energy output by over 60 times compared to natural uranium use in PHWRs.
    4. Reduced Import Dependence: Minimizes reliance on imported enriched uranium.

    What are the technological and operational features of the Kalpakkam PFBR?

    1. Capacity: 500 MWe prototype reactor.
    2. Fuel Type: Mixed Oxide Fuel (MOX) containing plutonium and uranium.
    3. Breeding Mechanism: Uses U-238 blanket to produce Pu-239.
    4. Coolant: Liquid sodium used due to high thermal conductivity and low neutron absorption.
    5. Example: Construction began decades ago; core loading completed in 2024.

    What are the global comparisons and challenges associated with FBRs?

    1. Limited Global Success: Countries like Japan, France, and the US shut down FBRs due to safety and economic concerns.
    2. Safety Concerns: Sodium coolant reacts violently with air/water; requires advanced containment systems.
    3. Cost Constraints: High capital costs and long gestation periods.
    4. India’s Position: Becomes second country after Russia to have a commercial FBR.

    How does this development accelerate the thorium-based third stage?

    1. Fuel Conversion: Converts thorium (Th-232) into fissile U-233.
    2. Inventory Build-Up: Ensures sufficient plutonium and U-233 for sustained thorium cycle.
    3. Strategic Timeline: Reduces delay in transitioning to thorium reactors.
    4. Example: FBR enables faster accumulation of fissile material required for advanced heavy water reactors (AHWRs).

    Conclusion

    The Kalpakkam breakthrough operationalizes a decades-old vision of self-reliant nuclear energy. It transforms India’s nuclear trajectory from resource-constrained to resource-optimized. Sustained investments, safety assurances, and technological scaling remain critical for full realization.

    PYQ Relevance

    [UPSC 2017] Give an account of the growth and development of nuclear science and technology in India. What is the advantage of the fast breeder reactor programme in India?

    Linkage: The question directly tests India’s indigenous nuclear capability, including the three-stage programme. The Kalpakkam Fast Breeder Reactor achieving criticality provides a contemporary example to substantiate advantages of FBRs in ensuring fuel sustainability, thorium utilization, and long-term energy independence.

  • First Ever Annual Survey of Incorporated Services Sector Enterprises (ASISSE)

    Why in the News?

    The National Statistical Office (NSO) launched the first ever Annual Survey of Incorporated Services Sector Enterprises (ASISSE) for 2024–25.

    What is ASISSE

    • New annual survey of incorporated services sector
    • Covers:
      • Companies under Companies Act 1956/2013
      • Limited Liability Partnerships (LLPs)

    Conducted By

    • National Statistical Office (NSO)
    • Under Ministry of Statistics and Programme Implementation

    Objectives

    • Create database of formal services sector
    • Fill data gap in services economy
    • Provide data for policymaking

    Coverage

    Sectors included: Trade, Transport, Hospitality, IT services, Education, Health, and Professional services

    Key Features

    • Sample size: ~21 lakh enterprises
    • Data source: GSTN database
    • Coverage: All States and UTs
    • Digital data collection
    • Legal basis:
      • Collection of Statistics Act 2008
      • Jan Vishwas Act 2023

    Why It is Important

    • Services sector contributes 50%+ of GDP
    • First annual data for formal services sector
    • Helps measure:
      • Employment
      • Growth
      • Investment

    Related Surveys

    • ASI: Annual Survey of Industries (Manufacturing)
    • ASUSE: Unincorporated Sector Survey
    • ASISSE: Incorporated Services Sector
    [2024] With reference to the sectors of the Indian economy, consider the following pairs: Economic activity : Sector 1 Storage of agricultural produce : Secondary 2 Dairy farm : Primary Mineral exploration : Tertiary 3 Weaving cloth : Secondary Select the correct answer using the code given below: (a) Only one pair (b) Only two pairs (c) Only three (d) All four

  • Advancing India’s Fisheries Sector 

    Why in the News?

    Union Budget 2026–27 announced ₹2,761.80 crore for fisheries sector, the highest ever allocation, strengthening India’s blue economy and fisher livelihoods.

    Key Highlights

    • India is 2nd largest fish producer globally
    • Share in Agricultural GVA: 7.43%
    • Fish production:
      • 2013–14: 95.79 lakh tonnes
      • 2024–25: 197.75 lakh tonnes
      • Increase: 106%
    • Seafood exports: ₹62,408 crore

    Major Government Schemes

    1. Pradhan Mantri Matsya Sampada Yojana (PMMSY)

    • Launched: 2020
    • Allocation 2026–27: ₹2,500 crore
    • Focus:
      • Production increase
      • Infrastructure
      • Value chain development

    2. PM Matsya Kisan Samridhi Sah Yojana (PM MKSSY)

    • Period: 2023–24 to 2026–27
    • Outlay: ₹6,000 crore
    • Focus:
      • Insurance
      • Credit
      • Formalisation

    3. Fisheries Infrastructure Development Fund (FIDF)

    • Launched: 2018–19
    • 225 projects approved
    • Investment: ₹6,685 crore
    • Employment: 2.5 lakh jobs

    Financial Inclusion

    • KCC (Kisan Credit Card) beneficiaries: 4.39 lakh fishers
    • Insurance coverage: 3.3 million
    • Livelihood support: 7.44 lakh families
    [2023] With reference to the role of biofilters in Recirculating Aquaculture System, consider the following statements: 1 Biofilters provide waste treatment by removing uneaten fish feed. 2 Biofilters convert ammonia present in fish waste to nitrate. 3 Biofilters increase phosphorus as nutrient for fish in water. How many of the statements given above are correct? (a) Only one (b) Only two (c) All three (d) None

  • Kalpakkam Fast Breeder Reactor Attains Criticality

    Why in the news?

    India’s first indigenous Fast Breeder Reactor (FBR) at Kalpakkam, Tamil Nadu has attained criticality, marking a major milestone in India’s three stage nuclear programme.

    What is Criticality

    Criticality means:

    • Self sustaining nuclear chain reaction begins
    • Reactor core working as designed
    • Step before electricity generation
    • Capacity: 500 MWe reactor

    What is Fast Breeder Reactor (FBR)

    • Produces more fuel than it consumes
    • Uses:
      • Uranium plutonium MOX fuel
      • Uranium 238 blanket to produce more fuel
    • This process called: Nuclear transmutation

    India’s Three Stage Nuclear Programme

    • Stage 1
      • Pressurised Heavy Water Reactors (PHWR)
      • Fuel: Natural uranium
    • Stage 2
      • Fast Breeder Reactors (FBR)
      • Produces plutonium
    • Stage 3
      • Thorium based reactors
      • India has large thorium reserves

    Why This is Important

    • India to become 2nd country after Russia
    • Indigenous nuclear technology
    • Strengthens energy security
    • Moves India toward thorium based energy
    [2022] With reference to India, consider the following statements: 
    1. Monazite is a source of rare earths. 
    2. Monazite contains thorium. 
    3. Monazite occurs naturally in the entire Indian coastal sands in India. 
    4. In India, Government bodies only can process or export monazite.” 
    Which of the statements given above are correct? 
    [A] 1, 2 and 3 only [B] 1, 2 and 4 only [C] 3 and 4 only [D] 1, 2, 3 and 4

  • BRO Project Chetak Completes 47 Years

    Why in News

    Project Chetak of the Border Roads Organisation (BRO) celebrated its 47th Raising Day on 4 April 2026 at Bikaner, Rajasthan.

    About Project Chetak

    • Launched: 1980
    • Implemented by: Border Roads Organisation (BRO)
    • Area: Western border region
      • Rajasthan
      • Punjab
      • Northern Gujarat

    Objectives

    • Strengthen border infrastructure
    • Ensure all weather connectivity
    • Support troop movement
    • Promote regional development

    Key Features

    • Maintains 4,000 km+ roads
    • 214 km Ditch Cum Bund (DCB) for: Border security and Flood control
    • Upgrading feeder roads to:
      • National Highway double lane standard

    About Border Roads Organisation (BRO)

    • The Border Roads Organisation (BRO), established on May 7, 1960, is a premier statutory construction force under India’s Ministry of Defence. 
    • It develops and maintains road networks, bridges, tunnels, and airfields in border regions and friendly neighboring countries. 
    • Primarily serving the armed forces, the BRO plays a critical role in enhancing national security and regional connectivity in challenging terrains.
    [2024] What are the duties of the Chief of Defence Staff (CDS) as Head of the Department of Military Affairs? 1 Permanent Chairman of Chiefs of Staff Committee. 2 Exercise military command over the three Service Chiefs. 3 Principal Military Advisor to Defence Minister on all tri-service matters. Select the correct answer using the code given below: (a) 1, 2, 3 (b) 1 and 2 only (c) 2 and 3 only (d) 1 and 3 only

  • [6th April 2026] The Hindu OpED: Transforming India’s nuclear power landscape 

    PYQ Relevance[UPSC 2018] With growing energy needs should India keep on expanding its nuclear energy programme? Discuss the facts and fears associated with nuclear energy.Linkage: The article directly addresses the expansion of nuclear energy to 100 GW by 2047, highlighting its role in energy security and net-zero goals. It also reflects the “facts vs fears” dimension through issues like high costs, liability concerns, and safety challenges alongside baseload advantages.

    Mentor’s Comment

    India’s nuclear power sector is at a decisive inflection point. The announcement of scaling nuclear capacity from 8,180 MW to 100 GW by 2047, along with the proposed SHANTI Act (2025), signals a structural shift from a state-controlled model to a mixed public-private framework. This marks a departure from decades of institutional rigidity and reflects the urgency of achieving energy security and net-zero commitments amid rising electricity demand.

    Why is nuclear energy critical for India’s energy transition?

    1. Baseload Stability: Ensures continuous electricity supply unlike renewables dependent on weather conditions; nuclear contributed 57 TWh vs thermal 1,363 TWh (2024-25)
    2. Net-Zero Alignment: Supports decarbonisation as coal remains inconsistent with climate goals
    3. Energy Demand Surge: Requires >2000 GW capacity for Viksit Bharat; renewables alone insufficient
    4. Low Carbon Intensity: Emits significantly lower CO₂ compared to fossil fuels

    What structural changes are proposed under the SHANTI Act, 2025?

    1. Private Sector Participation: Enables private companies to build, own, and operate nuclear plants
    2. Regulatory Autonomy: Grants statutory status to Atomic Energy Regulatory Board (AERB) ensuring oversight independence
    3. Liability Reform: Replaces Civil Liability for Nuclear Damage Act (CLNDA) of 2010 to attract foreign and domestic investment
    4. Legal Overhaul: Repeals Atomic Energy Act 1962, marking a systemic shift

    What are the major constraints in scaling nuclear power?

    1. High Capital Costs: Example: 700 MW PHWR costs ~$2 million per MW
    2. Project Delays: Example: Fleet mode reactors approved in 2017 yet not operational
    3. Financing Challenges: Requires $200+ billion investment over two decades
    4. Regulatory Complexity: Issues in tariffs, insurance, fuel ownership, and waste management
    5. Public Opposition: Safety concerns and land acquisition challenges

    How does nuclear compare with renewables in India’s energy mix?

    1. Installed Capacity vs Output: Renewables ~50% capacity but only 22% generation
    2. Intermittency Issue: Solar and wind depend on time-of-day and climate variability
    3. Storage Limitation: Requires large investments in battery storage
    4. Baseload Advantage: Nuclear ensures stable supply unlike renewables

    What technological pathways are being explored?

    1. Pressurized Heavy-Water Reactor (PHWR) Expansion: Indigenous 220 MW PHWR (15 operational) scalable to 540 MW and 700 MW
    2. Small Modular Reactors (SMRs): Government allocated ₹20,000 crore for 5–200 MW designs by 2033
    3. Foreign Collaboration: Westinghouse, GE-Hitachi designs under consideration
    4. Advanced Fuels: Thorium with HALEU to leverage India’s reserves

    What is the three-front strategy for achieving 100 GW?

    1. Indigenisation: Reduces cost through domestic manufacturing (example: China’s $2 billion per MW benchmark)
    2. R&D Acceleration: Focus on SMRs and molten salt reactors
    3. Private Sector Integration: Enables financing and scaling through industry participation

    What role can private industry play in nuclear expansion?

    1. Captive Power Plants: Industries already operate 10-200 MW fossil-based plants (~90 GW capacity)
    2. Sectoral Demand: Steel, cement, data centres show interest in nuclear energy
    3. Economies of Scale: Modular construction reduces time from first pour to commissioning to ~40 months

    Conclusion

    India’s nuclear expansion marks a shift from state monopoly to a mixed ecosystem driven by reforms, private participation, and technological innovation. Achieving 100 GW by 2047 depends on aligning regulatory clarity, financial viability, and public trust while integrating nuclear energy into a broader low-carbon strategy.

  • CERC Delays Stricter Grid Rules for Wind and Solar Generators

    Why in the News?

    The Central Electricity Regulatory Commission (CERC) has delayed stricter grid stability rules for wind and solar generators by one year, giving renewable energy companies more time to adapt.

    About the Central Electricity Regulatory Commission (CERC)

    • Central Electricity Regulatory Commission, a key regulator of the power sector in India, is a statutory body functioning with quasi-judicial status under sec – 76 of the Electricity Act 2003.

    Key Decision

    • Stricter deviation norms postponed
    • Earlier implementation: April 2026
    • New implementation: April 2027

    What Are Deviation Norms

    • Power generators must: Declare electricity supply in advance
    • If actual generation differs:
      • Grid stability disturbed
      • Operators impose deviation charges (penalties)

    Why Renewable Energy Gets Relaxation

    • Wind and solar power:
      • Depend on weather
      • Hard to predict output
      • More variability
    • Hence: Relaxed deviation norms

    Deviation Limits 

    Deviation band = Allowed variation between scheduled power and actual generation without penalty.

    Solar & Hybrid Projects

    • Earlier: ±10%
    • Now: ±5%
      • Must generate closer to committed power
    • Example:
      • Scheduled 100 MW
      • Earlier allowed: 90 to 110 MW
      • Now allowed: 95 to 105 MW

    Wind Projects

    • Earlier: ±15%
    • Now: ±10%
    • Example:
      • Scheduled 100 MW
      • Earlier: 85 to 115 MW
      • Now: 90 to 110 MW
    [2018] With reference to solar power production in India, consider the following statements: 
    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

  • Great Nicobar Project: Tribal Relocation Plan Raises Concerns

    Why in the News

    A draft relocation plan for Nicobarese tribal communities linked to the ₹92,000 crore Great Nicobar Island (GNI) mega project has triggered fresh concerns and protests.

    Great Nicobar Infrastructure Project

    • Location: Great Nicobar Island
    • Project Cost: ₹92,000 crore
    • Objective:
      • Infrastructure development
      • Strategic maritime hub
      • Port and airport development

    Project is strategically important for:

    • Indo Pacific presence
    • Maritime trade routes
    • National security

    Tribes of Andaman & Nicobar 

    Major tribes:

    • Nicobarese
    • Shompen
    • Jarawa
    • Sentinelese
    • Onge
    • Great Andamanese
    [2014] Which one of the following pairs of islands is separated from each other by the ‘Ten Degree Channel’? (a) Andaman and Nicobar (b) Nicobar and Sumatra (c) Maldives and Lakshadweep (d) Sumatra and Java

  • Government Exempts Customs Duty on 40 Petrochemical Products

    Why in the News?

    The Government of India has exempted Customs Duty on 40 petrochemical products till June 30, 2026, to reduce supply disruptions and cost pressures caused by the West Asia conflict.

    Key Highlights

    • Customs duty exemption for 40 petrochemical products
    • Valid till: June 30, 2026
    • Notification issued: April 1, 2026
    • Objective: Ensure supply stability and reduce input costs

    Major Products Covered

    Important petrochemical items include:

    • Polypropylene
    • Polystyrene
    • Polyols
    • Polybutadiene
    • Styrene Butadiene
    • Anhydrous Ammonia
    • Purified Terephthalic Acid (PTA)
    • Mono Ethylene Glycol (MEG)
    [2018] Consider the following statements: 
    1 The quantity of imported edible oils is more than the domestic production of edible oils in the last five years. 
    2 The Government does not impose any customs duty on all the imported edible oils as a special case. 
    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