Union Budget 2025: Understanding Revenue Budget and Capital Budget

• Finance Minister Nirmala Sitharaman presented the Union Budget 2025 in the Lok Sabha on February 1, marking her the first finance minister to present eight consecutive Union Budgets.
• As the country anticipates her address, it’s essential to understand the key components of the government’s financial structure: the Revenue Budget and the Capital Budget.

What are Revenue Budget and Capital Budget?

• The government’s budget is divided into two main parts: the Revenue Budget and the Capital Budget. Each serves a distinct purpose in managing the nation’s finances.
• Revenue Budget
• The Revenue Budget records the government’s income (revenue receipts) and the expenditure funded by these receipts. It includes:
• 1. Revenue receipts:
• Tax revenues: These are earnings from taxes such as income tax, corporate tax, customs duties, and excise duties, levied by the Union government. 
• Non-tax revenues: These come from sources like dividends from government investments, fees for services, and interest earned on loans extended by the government.
• 2. Revenue expenditure:
• This refers to the spending required for the day-to-day operation of government departments and services.
• It also includes subsidies, interest payments on debts, and grants to state governments or other organisations. Revenue expenditure does not result in the creation of long-term assets.
• Revenue deficit: When revenue receipts fall short of revenue expenditure, a revenue deficit occurs, signalling that the government is spending more than it earns. Persistent deficits highlight financial imbalances and the need for corrective measures to align income with expenditure.

Capital Budget

• In contrast, the Capital Budget focuses on the government’s capital receipts and payments, which are primarily tied to asset creation and fiscal stability
• 1. Capital receipts
• These include funds that either create a liability for the government or reduce its assets. Examples are:
• Loans raised from the public through market borrowings or Treasury Bills.
• Loans from foreign governments or institutions.
• Recoveries of loans previously granted by the central government to states, Union Territories, or other parties
• 2. Capital expenditure:
• This involves spending on acquiring assets like land, buildings, machinery, and equipment.
• Investments in government companies, corporations, and infrastructure projects also fall under this category.
• Additionally, loans and advances granted by the central government are considered part of capital expenditure.
• The Capital Budget is critical for infrastructure development, boosting economic productivity, and ensuring long-term economic growth

Why is this distinction important?

• Under the Indian Constitution, the government is required to differentiate between expenditure on revenue accounts and other expenditures. This classification helps provide clarity on how funds are utilised—whether for immediate operational needs or long-term asset creation — and ensures transparency in fiscal management.
• As the Union Budget 2025 unfolds, understanding these components can offer deeper insights into the government’s financial priorities and strategies to drive economic growth.

Budget 2025: Food, fertiliser, direct, indirect, interest subsidies decoded

• In the Union Budget, subsidies play a crucial role in economic planning and welfare. In India, both central and state governments offer subsidies to ease the financial burdens on farmers and improve agricultural productivity. Subsidies also help stabilise prices, promote economic growth, and support vulnerable populations.
• The Union Budget 2025 is out on February 1, 2025, where  Finance Minister Nirmala Sitharaman presented her eighth consecutive Budget in front of the Parliament. Here is a closer look at what subsidies are and how they are allocated.

What is a subsidy?

• A subsidy is financial assistance provided by the government to individuals or businesses through cash payments, grants, or tax breaks. The primary purpose of subsidies is to make essential goods and services more affordable for the people and to encourage the production and consumption of certain items, particularly those with positive societal benefits.

 Agricultural subsidies can be broadly classified into direct subsidies and indirect subsidies:

• Direct subsidies
• These subsidies involve actual payments made to farmers, businesses, or individuals. The government directly transfers funds or provides financial aid to the beneficiary.
• This type of subsidies in India include the PM Kisan Samman Nidhi Scheme, which provides Rs 6,000 annually to all landholding farmer families in three installments, and farm loan waivers, where the government repays farmers’ loans using public funds to ease their financial burden

Indirect subsidies

• Indirect subsidies help lower the price of a particular commodity or service, making it more affordable for farmers. These subsidies are generally provided in the form of discounts, reducing the cost of key agricultural inputs or services.
• Common examples of indirect subsidies in India include Minimum Support Price (MSP) for crops, fertiliser subsidies (urea), irrigation subsidies (PMKSY), interest rate subsidies (Kisan Credit Card), crop insurance subsidies (PMFBY), electricity subsidies for irrigation, infrastructure subsidies (cold storage loans), and research and extension services to improve farming practices.

Interest subsidies

• Interest subsidies in the budget aim to reduce interest rates for specific sectors like education, housing, and agriculture. Examples include the Central Sector Interest Subsidy Scheme (CSIS) for students, the Interest Subvention Scheme for farmers, and the Credit Linked Subsidy Scheme (CLSS) for housing loans for the economically weaker sections.

Food subsidy

• The government of India provides food grains to targeted beneficiaries at highly subsidised rates through various central schemes under the National Food Security Act (NFSA), 2013, and other welfare schemes (OWS) such as Priority Household (PHH), Antodaya Anna Yojana (AAY), PM Poshan (earlier known as Mid-day Meal), and Integrated Child Development Services (ICDS).

Food-grains for these schemes are procured through two primary modes: 

• 1. Centralised procurement (CP) mode: The states and their agencies procure the food grains and hand them over to the Food Corporation of India (FCI), which then releases funds to the states as per the provisional cost sheet issued by the Department of Food and Public Distribution (DFPD). The state lifts food grains from FCI based on the allocation order issued by the DFPD for distribution under central schemes.
•  2. Decentralised procurement (DCP) mode: Here, the responsibility for the procurement and distribution of food grains under central schemes lies with the state government. If surplus food grains are procured, they are delivered to FCI. In case of a deficit, FCI supplies the required food grains to the state. A Memorandum of Understanding (MOU) is signed between the state and DFPD to facilitate this process.
• The DFPD releases funds to FCI and DCP states to maintain adequate buffer stock and distribute food grains under various central schemes, including the National Food Security Act (NFSA) and other welfare schemes (OWS)

Food subsidy released:

• FY 2021-22: Rs 2,88,718.54 crore
• FY 2022-23: Rs 2,72,501.70 crore
• FY 2023-24: Rs 2,11,394.39 crore
• In July 2024, the government allocated Rs 2,05,250 crore for food subsidies.

Fertiliser subsidy

• Fertiliser subsidies are provided to help farmers buy fertilisers at a lower cost. The government provides these subsidies to make sure that the agricultural sector can thrive by keeping the prices of fertilisers affordable, especially since the cost of fertilisers can change due to fluctuations in the international market.

 How does the fertiliser subsidy work? 

• The government gives subsidies to companies that make or import fertilisers. These subsidies are paid based on how much fertiliser is actually sold to farmers by local retailers. The subsidy is transferred directly to fertiliser companies through a system called Direct Benefit Transfer (DBT).
• To ensure that the benefits reach the right people, the government uses Aadhaar cards, Kisan Credit Cards (KCC), or Voter Identity Cards to identify eligible farmers. The subsidies are transferred on a weekly basis

There are two main types of fertiliser subsidies: 

• 1. Nutrient-Based Subsidy (NBS): This subsidy is for Phosphatic and Potassic (P&K) fertilisers. The amount of subsidy depends on the nutrient content of the fertiliser, and it’s decided on an annual or semi-annual basis. The Maximum Retail Price (MRP) is set by fertiliser companies based on market conditions
• 2. Urea Subsidy: For urea (a common fertiliser), the government covers the difference between the cost of urea and the price at which urea is sold to farmers. Urea is sold at a fixed price, and the government compensates manufacturers for the difference.

Fertiliser subsidy budget:

• For FY 2022-2023 the government spent Rs 2,25,222 crore on fertiliser subsidies.
• For FY 2023-2024, the government had allocated Rs 1,75,103 crore for fertiliser subsidies.
• In July 2024, the fertiliser subsidy was set at Rs 1,64,000 crore

Advantages of subsidies

• Subsidies offer several advantages, including lowering prices and controlling inflation by reducing the cost of essential goods, such as fuel, particularly during rising global prices. They also help prevent the decline of key industries like agriculture and fishing, ensuring these sectors remain viable and continue to support the population. 
• Additionally, subsidies incentivise production, leading to an increased supply of critical goods and services such as food, water, and education, thereby improving access for the broader population.

Potential drawbacks of subsidies

• Despite their benefits, subsidies can also have some drawbacks. One major disadvantage is the potential for supply shortages, as increased demand driven by subsidised prices may outpace production capacity.
• Additionally, measuring the success of subsidies can be difficult, making it challenging to assess their long-term economic impact.
• Finally, funding subsidies often necessitates higher taxes, which can place a financial burden on the general population and businesses, as they contribute to the government’s ability to subsidise industries.

NGT seeks Centre’s response on use of invasive fish species as mosquito control agents

• The National Green Tribunal (NGT) has sought a response from the Centre on two highly-invasive and alien fish species being used as biological agents for controlling mosquitoes.
• The tribunal was hearing a plea about two fish species — Gambusia Affinis (Mosquitofish) and Poecilia Reticulata (Guppy) — being released in water bodies to control mosquitoes in various states.
• The states which stored and released Mosquitofish were Assam, Arunachal Pradesh, Gujarat, Karnataka, Maharashtra, Rajasthan, Tamil Nadu, Uttar Pradesh, Odisha, Punjab and Andhra Pradesh, while Guppy species had been released in Maharashtra, Karnataka, Punjab and Odisha, the plea said.
• The introduction of Gambusia affinis and Poecilia reticulata aims to reduce mosquito-borne diseases.
• These fish consume mosquito larvae, providing a biological control method.
• However, their invasive nature poses risks to local biodiversity.
• The National Biodiversity Authority has identified these species as harmful to indigenous fish populations.
• The National Biodiversity Authority has declared these two fish species as “invasive and alien” as they adversely impacted the local aquatic ecosystems by causing food scarcity for indigenious fish species.
• The National Green Tribunal’s involvement marks the legal implications of introducing invasive species. The tribunal has called for responses from various authorities, including the Union Ministry of Health and Family Welfare and the National Centre for Vector Borne Diseases Control. This scrutiny reflects a growing awareness of biodiversity conservation.
• Globally, many countries are reconsidering the use of invasive species for pest control. Alternatives such as habitat management, biological control using native species, and environmentally friendly insecticides are being explored. These methods aim to balance pest control with ecological integrity.
• NGT also referred to the ban imposed on Mosquitofish by countries such as Australia and New Zealand.
•  The plea referred to a report by the Invasive Species Specialist Group, as per which Mosquitofish was among the 100 world’s “worst invasive alien species”.

National Green Tribunal

• The National Green Tribunal (NGT) was established on October 18, 2010 under the National Green Tribunal Act, 2010 for effective and expeditious disposal of cases relating to environmental protection and conservation of forests and other natural resources. 
• It is a specialised body equipped with the necessary expertise to handle environmental disputes involving multi-disciplinary issues. 
•  NGT has five places of sitting — the principal bench at New Delhi and zonal benches at Pune, Kolkata, Bhopal and Chennai. 
• The Tribunal is headed by the chairperson who sits in the principal bench and has at least ten but not more than twenty judicial members and at least ten but not more than twenty expert members.
• Any person seeking relief and compensation for environmental damage involving subjects in the legislations mentioned in Schedule I of the National Green Tribunal Act, 2010 may approach the Tribunal.
• The precursor to the NGT Act was the 186th Report of the Law Commission of India submitted in March 2003 which came after the Supreme Court repeatedly urged Parliament through various judgments to establish specialised environmental courts, with qualified judges and technical experts on the bench. 
• the Supreme Court also put forward that there should be direct appeals to the Supreme Court from such environmental courts. 
• The Law Commission then recommended creation of a specialised court to deal with the environmental issues. The Law Commission expressed the view that it is not convenient for the High Courts and the Supreme Court to make local inquiries or to receive evidence. Moreover, the superior Courts will not have access to expert environmental scientists on permanent basis to assist them. 
• The NGT was conceived as a complementary specialised forum to deal with all multidisciplinary environmental issues, both as original as well as an appellate authority. 
• The specialised forum was also made free from the rules of evidence applicable to normal courts and was permitted to lay down its own procedure to entertain oral and documentary evidence, consult experts, etc with specific mandate to observe the principles of natural justice.
• The right to a healthy environment has been construed as a part of the right to life under Article 21 of the Constitution in the judicial pronouncement in India.
• The NGT is set up under the constitutional mandate under Entry 13 List I of Schedule VII to enforce Article 21 in regard to the environment and the Tribunal was conferred special jurisdiction for enforcement of environmental rights.

Retinal diseases: RNA therapeutics show promise but is India ready?

• Vision is crucial to navigate the world, connect with others, and perform everyday tasks. It helps us perceive colours, shapes, and movement, which are essential to learn, work, and keep safe.
• According to the World Health Organisation, more than 2.2 billion people worldwide experience some form of vision impairment. The causes range from cataracts and diabetic retinopathy to glaucoma, age-related macular degeneration, and inherited retinal diseases (IRDs).
• IRDs are genetic conditions that lead to progressive vision loss, often resulting in blindness. These diseases stem from mutations in more than 300 genes responsible for the function of the retina, the light-sensitive tissue at the back of the eye. While some individuals may lose their sight shortly after birth, others experience gradual deterioration over time. In many cases, early intervention could slow down or even prevent the progression of blindness.
•  An estimated 5.5 million people suffer from IRDs around the world, with a prevalence rate of one in 3,450. However, the situation is more critical in India. Studies have revealed significantly higher prevalence, with one in 372 individuals in rural South India,one in 930 in urban South India, and one in 750 in rural Central India affected by these conditions.

A treatment breakthrough

• In 2017, the U.S. Food and Drug Administration (FDA) made a historic move by approving the first gene therapy for blindness caused by mutations in the RPE65 gene. This approval sparked hope for patients with other genetic causes of blindness. Currently, more than 50 clinical trials are exploring gene therapy as an option to treat various inherited eye disorders.
• In India, however, awareness among clinicians about the availability and potential of RPE65 gene therapy remains limited. While gene therapy has proven revolutionary, it is not yet a universal solution for all genetic eye diseases. This is where RNA-based therapies are poised to make a significant impact.
• RNA-based precision therapeutics are emerging as a game-changer for genetic disorders, including IRDs. Unlike DNA or genome-editing therapies, RNA-based therapies offer a safer alternative as they make temporary changes that don’t carry over to future generations, reducing the risk of unintended long-term effects.
• Recent advancements have introduced RNA-based therapies like antisense oligonucleotides (ASOs), which have already been used successfully to treat diseases such as spinal muscular atrophy and Duchenne muscular dystrophy. Medical researchers are now exploring ASO therapy for retinal conditions like Stargardt disease, Leber congenital amaurosis, and retinitis pigmentosa.
• Beyond ASOs, researchers are also developing more advanced RNA-based options to address IRDs. One promising approach involves RNA-editing with ADAR enzymes, which can correct specific genetic mutations at the RNA level. This method has the potential to restore protein production in retinal cells without altering the underlying DNA, offering a new way to treat retinal degenerative diseases caused by single-point mutations.
• Another innovative strategy is the use of suppressor tRNAs to bypass stop-codon mutations, which can prematurely halt protein synthesis in retinal cells. By enabling the production of full-length proteins, this approach could help restore proper retinal function in IRD patients, where stop-codon mutations disrupt vital protein production.
• Another potential small molecule RNA-based therapy is PTC124, also known as ataluren, which is already being used to treat patients with cystic fibrosis and Duchenne muscular dystrophy. Recently, clinical trials have begun to investigate its use in treating a rare developmental eye disease called aniridia.
• Taken together, these options offer a more targeted, personalised treatment approach that could halt the progression of IRDs and improve patient outcomes with greater precision.

India and precision therapeutics

• Precision medicine is an approach that tailors treatments to an individual’s genetic makeup, lifestyle, and other factors, offering a more targeted alternative to the one-size-fits-all approach of traditional options.
• For rare diseases like IRDs, understanding the genetic mutations prevalent in a population is essential for researchers to develop effective RNA-based therapies. Although researchers have linked more than 300 genes to IRDs, research in India has yet to fully map the genetic mutations responsible for these conditions in the local population.
• In fact, there is currently no large cohort study in India (i.e. involving at least 500 patients) to describe the mutation spectrum of IRDs. Such extensive studies are vital for researchers to identify the most common genetic defects that can subsequently be targeted using precision medicine.
• For example, the ABCA4 gene is commonly mutated in IRD patients worldwide and is a popular therapeutic target. However, we lack a clear understanding of whether it is just as prevalent in Indian populations and/or whether some other mutation is expressed more often in certain ethnic groups.
• India’s large size and diverse population add another layer to this challenge. Genetic mutations can vary significantly across different communities, making it difficult to identify common mutations. Accurately mapping these mutations necessitates extensive, resource-intensive research across various subgroups.
• Additionally, there are several barriers, including a lack of awareness of the genetic basis of IRDs among the people at large and healthcare providers alike, limited availability of genetic counselling services, insufficient research funding, and restricted access to diagnostic infrastructure in rural areas.
• Thus, to fully unlock the potential of RNA-based therapeutics, India must prioritise genetic research with a particular emphasis on understanding the mutation profiles of people with IRDs, in collaboration with local research institutions and healthcare providers.
• Expanding partnerships between global and local pharmaceutical companies, as well as research institutes, will also make these treatments more accessible to Indian patients. Raising awareness among clinicians and researchers about advances in RNA therapies will likewise be crucial to ensure they are implemented effectively.

Tropex 25

• TROPEX is the Indian Navy’s largest biennial maritime exercise, involving the Indian Army, Air Force, and Coast Guard. Conducted in the Indian Ocean, it aims to validate operational concepts and enhance operational readiness and interoperability in a multi-threat environment.
• The exercise is a crucial component of India''s defence strategy, designed to test and improve the interoperability of various forces in real-world scenarios. The presence of high-ranking officers aboard the aircraft carrier underscores the importance of this initiative for national security and military preparedness.
• TROPEX-25, or Theatre Level Operational Readiness Exercise 2025, is military exercise conducted by the Indian Navy. This biennial event showcases India’s military capabilities and readiness in the Indian Ocean Region. The exercise involves coordination among the Indian Navy, Army, Air Force, and Coast Guard, emphasising joint operations and integrated fleet readiness.
• TROPEX is the largest maritime exercise of the Indian Navy.
• It occurs every two years and involves multiple branches of the armed forces.
• Recently, senior military leaders observed the exercise aboard INS Vikrant.
• The event featured operational demonstrations and live weapon firings, showcasing India’s combat readiness.
• TROPEX-25 reflects India’s evolving military doctrine. Joint warfare and fleet integration are now central to national defence. The exercise marks the importance of unified operations among different military branches. This shift is crucial as modern conflicts often span multiple theatres.
• For the first time, the Eastern and Western Fleets operated together during TROPEX-25. This integration demonstrates India’s ability to function as a single maritime force. The combined efforts enhance operational capabilities across the Indian Ocean Region, signalling a robust deterrent to potential adversaries.
• INS Vikrant’s participation marked a very important moment in India’s naval strategy. The aircraft carrier is no longer just a symbolic asset. It plays a critical role in networked fleet combat and real-world naval strike missions. This capability expands India’s maritime reach in the Indo-Pacific
• TROPEX-25 sends a clear signal to the Indo-Pacific region, especially in light of China’s growing naval presence. The exercise showcases India’s ability to counterbalance Chinese activities in the Indian Ocean. It reinforces India’s commitment to maintaining regional security and stability.
• During TROPEX-25, the Vice Chiefs of the Army, Navy, and Air Force came together on INS Vikrant. Their presence emphasised the importance of joint operations. The exercise included coordinated maritime strike missions, showcasing the military’s commitment to operational synergy.
• TROPEX-25 strengthens India’s alliances, particularly with Quad partners – the United States, Japan, and Australia. The exercise enhances India’s capacity for coalition-led maritime defence efforts. It encourages strategic coordination among allies and sends a strong message to potential adversaries.
• The successful execution of TROPEX-25 indicates a shift in India’s naval strategy. Joint operations are no longer mere aspirations but are being realised in practice. The exercise sets a precedent for future military engagements, prioritising collaboration and integrated operations.

Govt announces Nuclear Energy Mission with an outlay of Rs 20,000 crore

• The Union Budget 2025-26 outlines a significant push towards nuclear energy as part of India''s long-term energy transition strategy. The government has set an ambitious target of 100 GW nuclear power capacity by 2047, positioning nuclear energy as a major pillar in India''s energy mix.
• This development aligns with the broader objectives of Viksit Bharat, ensuring energy reliability and reducing dependency on fossil fuels. To achieve this goal, strategic policy interventions and infrastructure investments are being undertaken, with an emphasis on indigenous nuclear technology and public-private collaborations.
• In the Union Budget 2025-26, Finance Minister Nirmala Sitharaman announced that a Nuclear Energy Mission for research & development of Small Modular Reactors (SMR) with an outlay of Rs 20,000 crore will be set up. At least five indigenously developed SMRs will be operationalised by 2033.
•  The Budget outlines a significant push towards nuclear energy as part of India’s long-term energy transition strategy. The government has set an ambitious target of 100 GW nuclear power capacity by 2047, positioning nuclear energy as a major pillar in India’s energy mix.
• The strategy includes significant policy changes and investments in infrastructure, with a focus on indigenous technology and public-private collaborations.

Nuclear Energy Mission 

• As a key component of energy security and sustainability, the government has launched the Nuclear Energy Mission for Viksit Bharat. 
• Recognizing nuclear power as a critical component for achieving energy security and sustainability, the government has introduced the Nuclear Energy Mission for Viksit Bharat. This initiative aims to enhance domestic nuclear capabilities, promote private sector participation, and accelerate the deployment of advanced nuclear technologies such as Small Modular Reactors (SMRs).

Small Modular Reactors (SMRs) and R&D Initiatives

• A key highlight of the Union Budget 2025-26 is the launch of a Nuclear Energy Mission, which is focused on research and development (R&D) of Small Modular Reactors (SMRs). The government has allocated ₹20,000 crore for this initiative, aiming to develop at least five indigenously designed and operational SMRs by 2033.

Nuclear Energy Mission for Viksit Bharat

• To facilitate the implementation of the Nuclear Energy Mission, amendments to the Atomic Energy Act and Civil Liability for Nuclear Damage Act will be taken up by the parliament. These amendments are expected to encourage private sector investments in nuclear power projects.
• This Mission seeks to enhance domestic nuclear capabilities, encourage private sector involvement, and accelerate the development of advanced technologies like Small Modular Reactors (SMRs).
• To implement this mission effectively, amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act will be proposed in Parliament, making it easier to attract private investment in nuclear energy projects.
• These amendments are expected to foster investment and innovation in the nuclear sector, helping India meet its target of 100 GW of nuclear energy by 2047 and reducing carbon emissions. India’s current nuclear capacity stands at 8,180 MW as of January 2025.
• The government will enter into partnerships with the private sector with the motive of:
• Setting up Bharat Small Reactors,
• Research & development of Bharat Small Modular Reactor, and
• Research & development of newer technologies for nuclear energy.

Bharat Small Reactors

• The government is actively expanding its nuclear energy sector by developing Bharat Small Reactors (BSRs) and exploring partnerships with the private sector. BSRs are 220 MW Pressurized Heavy Water Reactors (PHWRs) with a proven safety and performance record. These reactors are being upgraded to reduce land requirements, making them suitable for deployment near industries such as steel, aluminium, and metals, serving as captive power plants to aid in decarbonization efforts.
• The plan involves private entities providing land, cooling water, and capital, while the Nuclear Power Corporation of India Limited (NPCIL) handles design, quality assurance, and operation and maintenance, all within the existing legal framework. This initiative aligns with India''s commitment to achieving 500 GW of non-fossil fuel-based energy generation by 2030 and meeting 50% of its energy requirements from renewable energy by 2030, as pledged at the COP26 Summit in Glasgow in 2021.
• In addition to BSRs, the Bhabha Atomic Research Centre (BARC) is developing Small Modular Reactors (SMRs) for repurposing retiring coal-based power plants and meeting power needs in remote locations. The Department of Atomic Energy (DAE) also plans to introduce new nuclear reactors, including high-temperature gas-cooled reactors for hydrogen co-generation and molten salt reactors aimed at utilizing India''s abundant thorium resources.
• This strategic move signifies India''s dedication to reducing carbon emissions and enhancing its civil nuclear energy program, with private sector participation playing a crucial role within the bounds of Indian laws and regulations.

Bharat Small Modular Reactors

• India is actively exploring Small Modular Reactors (SMRs) as a crucial part of its energy transition strategy, aiming to achieve net-zero emissions while ensuring energy security. SMRs, are advanced nuclear reactors with a power generation capacity ranging from less than 30 MWe to 300+ MWe, provide a flexible, scalable, and cost-effective alternative to conventional large nuclear reactors.
•  Given India''s growing energy demands and the need for reliable, low-carbon power, SMRs can play a transformative role in complementing renewable energy sources and stabilizing the grid. Their modular design allows for factory-based manufacturing, reducing construction timelines and costs, making them suitable for both on-grid and off-grid applications, including deployment in remote locations.
• India’s expertise in Pressurized Heavy Water Reactors (PHWRs) provides a strong foundation for the development and deployment of indigenous SMR designs. By integrating SMRs into its energy mix, India can address land constraints, reduce dependence on fossil fuels, and enhance its ability to meet international climate commitments under the Paris Agreement (2015) which India ratified in October 2016.

Government Initiatives for Enhancing India’s Nuclear Capacity

• India is actively enhancing its nuclear power capacity to meet growing energy demands and achieve environmental goals. The government has initiated steps to increase nuclear power capacity from the current 8,180 MW to 22,480 MW by 2031-32. This expansion includes the construction and commissioning of ten reactors, totalling 8,000 MW, across Gujarat, Rajasthan, Tamil Nadu, Haryana, Karnataka, and Madhya Pradesh.
• Additionally, pre-project activities for ten more reactors have commenced, with plans for progressive completion by 2031-32. Further, the government accorded in-principle approval to set up 6 x 1208 MW nuclear power plant in cooperation with the USA at Kovvada in Srikakulam district in the state of Andhra Pradesh.
• A significant milestone was achieved on September 19, 2024, when the Rajasthan Atomic Power Project''s Unit-7 (RAPP-7), one of the country’s largest and third indigenous nuclear reactors, reached criticality, marking the beginning of controlled fission chain reaction. This event signifies India''s growing capability in building and operating indigenous nuclear reactors, contributing to a future powered by homegrown technology.
• Safety remains a cornerstone of India''s nuclear energy policy. India''s nuclear power plants operate with stringent safety protocols and international oversight. The radiation levels at Indian nuclear facilities are consistently well below global benchmarks, underscoring the country''s commitment to secure and sustainable nuclear energy. These efforts align with India''s broader strategy to provide clean and reliable energy, contributing to long-term energy security and environmental sustainability.

SMRs in India’s Energy Transition

• India is keen on integrating SMRs into its energy strategy to meet growing energy demands while achieving net-zero emissions.
• SMRs are advanced nuclear reactors with a power generation capacity ranging from less than 30 MWe to 300+ MWe, which provide a flexible, scalable, and cost-effective alternative to conventional large nuclear reactors.  Given India’s growing energy demands and the need for reliable, low-carbon power, SMRs can play a transformative role in complementing renewable energy sources and stabilising the grid. 
• Their modular design allows for factory-based manufacturing, reducing construction timelines and costs, making them suitable for both on-grid and off-grid applications, including deployment in remote locations.
• India’s experience with Pressurised Heavy Water Reactors (PHWRs) provides a solid foundation for developing indigenous SMR designs. 
• SMRs will help reduce land use and dependence on fossil fuels, assisting India in meeting its climate commitments under the Paris Agreement.

Bharat Small Reactors (BSRs)

• The government is also advancing the development of Bharat Small Reactors (BSRs), which are 220 MW Pressurized Heavy Water Reactors (PHWRs) with a proven safety record. 
• These reactors are being upgraded to reduce land requirements, making them suitable for deployment near industries like steel, aluminum, and metals, acting as captive power plants for decarbonisation.
• Private companies will provide land, cooling water, and capital, while the Nuclear Power Corporation of India (NPCIL) will handle design, quality assurance, and operations within the existing legal framework.
• This initiative contributes to India’s goal of generating 500 GW of non-fossil fuel-based power by 2030 and achieving 50 per cent renewable energy by 2030.
• Additionally, the Bhabha Atomic Research Centre (BARC) is developing SMRs for repurposing retiring coal plants and powering remote areas. 
• The Department of Atomic Energy (DAE) is also working on new nuclear reactor designs, including high-temperature gas-cooled reactors for hydrogen production and molten salt reactors utilizing India’s thorium resources.

Government Initiatives to Enhance Nuclear Capacity

• The government aims to increase India’s nuclear capacity from 8,180 MW to 22,480 MW by 2031-32. 
• This expansion includes building 10 new reactors, totaling 8,000 MW, in various states like Gujarat, Rajasthan, and Tamil Nadu. Additionally, pre-project activities have begun for 10 more reactors, with plans for completion by 2031-32.
• The government has accorded in-principle approval to set up a 6x1208 MW nuclear power plant in cooperation with the United States at Kovvada in Srikakulam district of Andhra Pradesh.
• The successful criticality of Rajasthan’s Atomic Power Project’s Unit-7 (RAPP-7) in September 2024 marked a significant achievement in India’s nuclear capabilities.

Safety Measures

• Safety remains a top priority in India’s nuclear program. Indian nuclear plants operate under strict safety protocols, with radiation levels well below global standards, ensuring safe and sustainable energy production.

Recent Developments in Nuclear Energy

• A new uranium deposit was discovered near the Jaduguda Mines, extending the mine’s life by over 50 years.
• Two indigenous 700 MWe PHWR units at Kakrapar, Gujarat, began commercial operation in FY 2023-24.
• India’s first Prototype Fast Breeder Reactor (PFBR) achieved significant milestones in 2024, including core loading and sodium purification.
• NPCIL and NTPC have signed a joint venture agreement, ASHVINI, to develop nuclear power plants, including the upcoming Mahi-Banswara project in Rajasthan.
• The provisions for nuclear energy in the Union Budget 2025-26 represent a transformative step in India’s energy strategy. By promoting nuclear power as a sustainable and reliable energy source, the government aims to ensure long-term energy security and meet the nation’s economic and environmental goals. 

EXERCISE Ekuverin

• The primary focus of Exercise Ekuverin is to enhance interoperability in counter-insurgency and counter-terrorism operations, as well as to conduct joint humanitarian assistance and disaster relief operations. This reflects a commitment to regional security and stability
• The term "Ekuverin," meaning "friends" in Dhivehi, symbolizes the camaraderie between India and the Maldives. The exercise has been held alternately between the two countries since its inception in 2009, with previous editions enhancing military collaboration and operational readiness.
• This joint military exercise not only strengthens defence ties but also reinforces both nations'' capabilities to respond effectively to regional challenges
• ‘Ekuverin’ means friends in Dhivehi language. 
• It is a bilateral annual exercise conducted alternatively in India and Maldives. In 2023, it was conducted at Chaubatia in Uttarakhand.
• The 14-day exercise is aimed at enhancing interoperability in counter insurgency and counter terrorism operations, and carry out joint humanitarian assistance and disaster relief operations. 
• The defence cooperation between the two countries extends from joint exercises to assisting Maldives with defence training and equipment requirements.
• ‘Ekatha’ is another annual exercise conducted between naval forces of both countries.

Improvements in bilateral defence and security ties

• The ties between India and the Maldives came under severe strain after President Mohamed Muizzu, known for his pro-China leanings, took charge of the top office in November 2023.
• Within hours of his oath, he had demanded the withdrawal of Indian military personnel from his country. Subsequently, the Indian military personnel were replaced by civilians.
• Maumoon is on a three-day visit to India, nearly eight months after New Delhi completed pulling out its military personnel from the Maldives.
•  The overall episode had significantly frayed the ties between the two nations. However, there was a thaw in the relations following Muizzu’s visit to New Delhi in October 2024.

India-Maldives relations

•  Maldives’ proximity to the west coast of India (it is barely 70 nautical miles away from Minicoy and 300 nautical miles away from India’s West coast), and its situation at the hub of commercial sea‐lanes running through Indian Ocean imbues it with significant strategic importance to India.
• India and Maldives share ethnic, linguistic, cultural, religious and  commercial links. Both the nations enjoy close, cordial and multidimensional relations based on shared values of democratic virtues, peaceful coexistence and rule of law.
• India was among the first to recognise Maldives after its independence in 1965 and to establish diplomatic relations with the country.
• India’s prompt assistance during the 1988 coup attempt, led to development of trust and long-term and friendly bilateral relations with the Maldives.
• • Both the countries are key players in maintaining safety and security of the Indian Ocean Region (IOR).
• Maldives occupies a very special place in the ‘Neighborhood First Policy’ and the SAGAR (Security and Growth for All in the Region) vision of the government of India.
• ‘India First’ has been a stated policy of the government of Maldives and President Solih, ever since he assumed office in November 2018. 
• Bilateral cooperation with Maldives includes the creation of people-friendly infrastructure – housing, water and sanitation, health and education, ports, roads and stadiums. It also includes maritime security, connectivity and people to people exchanges.

India''s Advanced Medium Combat Aircraft (AMCA) Stealth Fighter Set To Feature ''Beast Mode'' Configuration: Report

• India''s Advanced Medium Combat Aircraft (AMCA), a fifth-generation fighter jet currently under development, is set to feature a unique capability known as ''Beast Mode.'' This mode significantly enhances the aircraft''s firepower and offensive capabilities, allowing it to carry a larger payload of weapons at the expense of its stealth features.

What Is ''Beast Mode''?

• ''Beast Mode'' refers to the configuration where the AMCA can maximise its armament for deep-strike missions, particularly in scenarios where air superiority has already been established and enemy defences have been neutralised. In this mode, the aircraft will utilize external hardpoints to carry a greater number of missiles and bombs, transitioning from its standard stealth configuration that prioritizes internal weapon storage to minimise radar visibility.
• Beast Mode is designed for use in less contested environments where rapid deployment of ordnance is prioritized. It is typically activated once enemy air defences have been neutralized, making stealth less critical. Aircraft like the Advanced Medium Combat Aircraft (AMCA) being developed by India are expected to switch between standard stealth configurations and Beast Mode. This adaptability is seen as a major tactical advantage in modern aerial combat.
• Operating in Beast Mode alters the flight dynamics of the aircraft due to the added weight and drag from external munitions. This change can provide unique training opportunities for pilots as they learn to manage different flight characteristics under varying loads.

Tactical Implications

• The introduction of ''Beast Mode'' is expected to be a game-changer for India''s aerial combat capabilities. By enabling the AMCA to switch between stealth and high-firepower configurations, it offers several tactical advantages:
• Versatility In Missions: The ability to adapt to different mission profiles—from stealthy reconnaissance to aggressive strike operations—enhances operational flexibility.
• Cost Efficiency: Utilising ''Beast Mode'' for missions where stealth is less critical can reduce wear on stealth coatings and systems, potentially lowering maintenance costs over time.
• Enhanced Combat Effectiveness: The AMCA can effectively engage in deep penetration strikes against heavily defended targets once air dominance is achieved, significantly impacting the dynamics of aerial warfare in the region.
• The AMCA''s development comes at a crucial time as India seeks to bolster its air force capabilities amidst regional tensions.
• The integration of ''Beast Mode'' not only aligns with modern warfare trends but also positions India competitively against other nations developing advanced fighter jets. With plans for mass production expected by 2035, the AMCA is poised to play a vital role in India''s defence strategy and air power projection in the coming decades