PIB Summaries 20 December 2025

Content

1. Crafted in India, Delivered Globally: Exports Powered by Trade Agreements
2. The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025

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Crafted in India, Delivered Globally: Exports Powered by Trade Agreements

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Why is it in News?

• 18 December 2025: Government released official data highlighting robust export growth and the role of Free Trade Agreements (FTAs).
• Key trigger: Signing of India–Oman CEPA.
• Signals:
  • Strong post-pandemic export momentum.
  • Strategic shift from protectionism to rules-based trade integration.
  • Exports positioned as a growth engine amid global slowdown and geopolitics.

Relevance

GS III – Economy

• Export-led growth; narrowing trade deficit.
• Role of FTAs in market access, GVC integration.
• Manufacturing & MSMEs: PLI, RoDTEP, GST 2.0, labour reforms.
• Export diversification → macroeconomic stability.

Understanding India’s Export Framework

• Exports: Goods + services sold abroad; critical for:
  • GDP growth.
  • Forex earnings.
  • Employment (labour-intensive sectors).
• Trade Balance = Exports – Imports.
• FTAs / CEPAs / CETAs:
  • Reduce tariffs.
  • Liberalise services.
  • Provide market access + mobility.
  • Enable integration into Global Value Chains (GVCs).

Snapshot: India’s Export Performance (Nov 2024–Nov 2025)

• Total exports:
  • ↑ from US$ 64.05 bn → US$ 73.99 bn (+15.52% YoY).
• Imports:
  • Largely stable at US$ 80.63 bn.
• Trade deficit:
  • ↓ from US$ 17.06 bn → US$ 6.64 bn (–61.07%).
• Structural takeaway:
  • Growth without import surge → healthier external sector.

Composition of Export Growth

Merchandise vs Services

• Merchandise exports:
  • US$ 38.13 bn (↑ 19.38% YoY).
  • Share: 51.53%.
• Services exports:
  • US$ 35.86 bn (↑ 11.67% YoY).
  • Share: 48.47%.
• Inference:
  • India nearing a balanced dual-export economy (goods + services).

Sector-wise Drivers of Growth

Labour-intensive & Traditional Strengths

• Readymade garments:
  • US$ 1.25 bn, ↑ 11.27%.
  • Employment-intensive → inclusive growth.
• Gems & jewellery:
  • ↑ 27.8%.
  • Demand from US, UAE, Europe.

Knowledge & Value-added Sectors

• Pharmaceuticals:
  • ↑ 20.19%.
  • “Pharmacy of the World”; exports to 200+ countries.
• Organic & inorganic chemicals:
  • ↑ 18.49%.
• Engineering goods:
  • Steady growth; US largest destination.

Strategic Manufacturing

• Petroleum products:
  • ↑ 11.65%.
  • India: 7th largest exporter of refined petroleum globally.
• Electronics (mobile phones):
  • From ₹1,500 crore (2014–15) → ₹2 lakh crore (2024–25).
  • 127× growth in a decade.
  • Top markets: US, UAE, Netherlands, UK, Italy.

Market Diversification: Geography Matters

• High growth markets:
  • UAE (14.5%), Japan (19%), Spain (9%), France (9.2%).
  • Egypt (27%), Saudi Arabia (12.5%), Hong Kong (69%).
• Insight:
  • Reduced overdependence on US–EU.
  • South–South trade and West Asia emerging as stabilisers.

Export Diversification: Strategic Rationale (Analytical Core)

1. Reducing Volatility

• Commodity concentration → price shocks.
• Diversification spreads risk across sectors & markets.

2. Shock Absorption

• Protects against:
  • Global recessions.
  • Geopolitical disruptions.
  • Supply-chain fragmentation.

3. Knowledge Spillovers

• New exports → new technologies, skills, logistics.
• Long-term productivity gains (endogenous growth logic).

4. Macroeconomic Stability

• Exports = 21.2% of GDP (2024).
• Diversification:
  • Stabilises forex.
  • Improves investment confidence.
  • Supports sustainable growth.

Recently Concluded

• India–Oman CEPA
  • Zero duty on 98.08% of Oman tariff lines.
  • First-ever commitments on traditional medicine (AYUSH).
  • Strong Mode-4 mobility provisions.
• India–UK CETA
  • Duty-free access to 99% of Indian exports.
  • Services + professional mobility.
  • Double Contribution Convention → ₹4,000+ crore savings.
• India–EFTA TEPA
  • USD 100 bn investment commitment.
  • 1 million jobs target.

Earlier Strategic Pacts

• India–UAE CEPA
• India–Australia ECTA
• India–Mauritius CECPA

Ongoing Negotiations

• India–EU FTA
• India–US Trade Agreement (Mission 500).
• India–GCC FTA
• Israel, ASEAN (AITIGA review), Canada, Mexico, New Zealand.

Domestic Policy Support: Export Competitiveness Stack

1. Export Promotion Mission (2025)

• Outlay: ₹25,060 crore.
• Niryat Protsahan: Trade finance for MSMEs.
• Niryat Disha: Quality, branding, compliance.

2. Labour Codes

• 29 laws → 4 codes.
• Lower compliance cost + worker protection.
• Boosts export-oriented manufacturing.

3. Next Gen GST 2.0

• 90% provisional refunds.
• Refunds for low-value consignments.
• Corrected inverted duty structures.
• Competitive logistics & working capital relief.

4. Structural Enablers

• RoDTEP: ₹58,000 crore disbursed.
• PLI:
  • ₹1.76 lakh crore investment.
  • ₹16.5 lakh crore output.
  • 12 lakh jobs.
• Logistics: PM GatiShakti, NLP.
• Institutional:
  • Districts as Export Hubs (734 districts).
  • SEZ exports: ₹14.56 lakh crore (FY 2024–25).

Critical Evaluation

• Strengths:
  • Balanced goods–services growth.
  • FTAs aligned with comparative advantage.
  • Electronics & pharma as sunrise exports.
• Concerns:
  • MSME compliance capacity.
  • Preference erosion due to overlapping FTAs.
  • Rules of origin complexity.
• Way Forward:
  • Trade facilitation + skilling.
  • Services-led FTAs with data adequacy.
  • Export credit deepening.

Conclusion

• India’s export story reflects a structural transformation, not a cyclical rebound.
• Diversification across products, markets, and agreements has:
  • Reduced vulnerability.
  • Improved trade balance quality.
  • Enhanced strategic autonomy.
• FTAs are no longer transactional tools but pillars of India’s growth, employment, and global economic positioning.

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The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025

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Why is it in News?

• 19 December 2025: Introduction of the SHANTI Bill, 2025.
• Context:
  • India’s commitment to net-zero by 2070.
  • Announcement of Nuclear Energy Mission in Union Budget 2025–26.
  • Target of 100 GW nuclear capacity by 2047.
• Signals a structural reset of India’s nuclear legal framework, last comprehensively shaped in 1962 and 2010.

Relevance

GS III – Energy, Environment, S&T

• Energy security & clean energy transition.
• Nuclear power for net-zero 2070; 100 GW by 2047.
• SMRs, hydrogen, indigenous nuclear technology.
• Safety, waste management, disaster preparedness.

What is Nuclear Energy?

• Definition:
  • Electricity generated using heat released from nuclear fission (splitting of atoms).
• Key features:
  • Near-zero greenhouse gas emissions.
  • High capacity factor (24×7 baseload).
  • Complements intermittent renewables (solar, wind).
• Global role:
  • Critical for deep decarbonisation in energy-intensive economies.

Evolution of India’s Nuclear Legal Framework

1. Atomic Energy Act, 1962

• Replaced the 1948 law.
• Centralised control over:
  • Research.
  • Development.
  • Use of atomic energy for peaceful purposes.
• Reflected post-independence strategic caution.

2. Amendments (1986, 1987, 2015)

• Allowed:
  • Government companies.
  • Select joint ventures.
• Objective:
  • Capacity expansion without diluting sovereign control.

3. Civil Liability for Nuclear Damage Act, 2010

• Introduced no-fault liability.
• Ensured victim compensation.
• However:
  • Created investor uncertainty.
  • Limited private and foreign participation.

Rationale Behind SHANTI Bill, 2025

• India’s nuclear ecosystem has matured:
  • Indigenous reactor design.
  • Global cooperation.
  • Advanced safety practices.
• Existing laws:
  • Fragmented.
  • Rigid.
  • Unsuitable for rapid scale-up and innovation.
• Need for:
  • Unified legislation.
  • Regulatory independence.
  • Clean energy alignment.

Present Status of Nuclear Power in India

• Share in electricity generation (2024–25): ~3.1%.
• Installed capacity: 8.78 GW.
• Pipeline:
  • Indigenous 700 MW and 1000 MW reactors.
  • Projected capacity: 22.38 GW by 2031–32.
• Inference:
  • Underutilised potential despite technological capability.

Nuclear Energy Mission (Budget 2025–26)

• Allocation: ₹20,000 crore.
• Focus: Small Modular Reactors (SMRs).
• Targets:
  • ≥5 indigenously designed SMRs by 2033.
• Key initiatives byBhabha Atomic Research Centre:
  • BSMR-200 (200 MWe).
  • SMR-55 (55 MWe).
  • HTGR (≤5 MWth) for hydrogen generation.
• Strategic aim:
  • Technology leadership.
  • Energy security.
  • Non-power nuclear applications.

Why India Must Scale Nuclear Power ?

• Rapidly rising electricity demand:
  • Data centres.
  • AI and advanced manufacturing.
• Limitations of renewables:
  • Intermittency.
  • Storage costs.
• Nuclear advantages:
  • Baseload power.
  • Long plant life.
  • Low land footprint.
• Legal bottleneck:
  • 1962 & 2010 laws unsuitable for 100 GW by 2047 ambition.

Core Architecture of the SHANTI Bill, 2025

1. Private Sector Participation

• Permitted in:
  • Plant operations.
  • Power generation.
  • Equipment manufacturing.
  • Limited fuel fabrication (within notified thresholds).
• Mandatory prior safety authorisation for all radiation-related activities.

2. Activities Reserved for Central Government

• Enrichment and isotopic separation (unless notified).
• Spent fuel reprocessing and recycling.
• High-level radioactive waste management.
• Heavy water production.
• Ensures strategic control.

3. Licensing & Safety Oversight

• Structured process for:
  • Granting.
  • Suspension.
  • Cancellation of licences.
• Safety authorisation becomes the legal cornerstone.

4. Graded Liability Framework

• Replaces uniform liability cap.
• Operator liability varies by:
  • Type of installation.
  • Risk profile.
• Detailed in Second Schedule.
• Addresses investor concerns while protecting victims.

5. Regulation of Non-Power Applications

• Covers nuclear use in:
  • Healthcare.
  • Agriculture.
  • Industry.
  • Research.
• Enables medical isotopes, food irradiation, industrial radiography.

6. Exemptions for Innovation

• Limited exemptions for:
  • R&D.
  • Experimental work.
• Encourages innovation without diluting safety.

Institutional & Regulatory Reforms

• Statutory status toAtomic Energy Regulatory Board:
  • Enhances independence.
  • Strengthens credibility.
• Dispute resolution:
  • Atomic Energy Redressal Advisory Council.
• Appellate authority:
  • Appellate Tribunal for Electricity.
• Claims framework:
  • Claims Commissioners.
  • Nuclear Damage Claims Commission for severe incidents.

Safeguards & Strategic Oversight

• Sovereign control retained over:
  • Fuel cycle.
  • Waste.
  • Security.
• Enhanced:
  • Emergency preparedness.
  • Quality assurance.
  • Safeguards and inspections.
• Ensures:
  • National security.
  • Strategic autonomy.
  • International confidence.

Critical Evaluation

Strengths

• Aligns nuclear law with climate goals.
• Unlocks private capital and innovation.
• Strengthens independent regulation.
• Supports SMRs and hydrogen economy.

Concerns

• Capacity of AERB to regulate expanded ecosystem.
• Public perception and safety confidence.
• Long-term waste management challenges.

Way Forward

• Transparent communication.
• Global best practices in liability and safety.
• Human resource and regulatory capacity building.

Conclusion

• The SHANTI Bill, 2025 represents a generational shift in India’s nuclear governance.
• It balances:
  • Expansion with caution.
  • Innovation with sovereignty.
  • Clean energy goals with strategic control.
• If effectively implemented, it can anchor nuclear energy as a reliable pillar of India’s clean, secure, and self-reliant energy future.

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