Analysis of The Hindu Editorial – February 13, 2025

Analysis of The Hindu Editorial 1 : Nuclear energy — dangerous concessions on liability

Context

The Indian government’s recent proposal to amend the Civil Liability for Nuclear Damage Act (CLNDA) as stated in the Union Budget 2024 raises significant concerns. This move, which seems aligned with U.S. interests, could shift liability away from nuclear suppliers, weakening nuclear safety measures. Given the immense risks associated with nuclear energy, any step that absolves suppliers of responsibility is a matter of national importance.

Introduction

On February 1, 2024, Finance Minister Nirmala Sitharaman announced proposed amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act during her budget speech. While this may be welcomed in Washington, where successive U.S. administrations have pushed for reducing supplier liability, it should worry Indian citizens. The U.S. has long sought to remove supplier accountability in case of nuclear accidents, ensuring that companies selling nuclear reactors are shielded from legal claims.

However, nuclear disasters, such as the 2011 Fukushima accident in Japan, have shown that supplier negligence can contribute to catastrophic consequences. Any law that indemnifies suppliers would undermine nuclear safety, place the financial burden on taxpayers, and weaken India’s ability to hold foreign corporations accountable. Additionally, the reactors that the U.S. is pressuring India to purchase are highly expensive and economically unviable.

The Risks Associated with Nuclear Reactors

Nuclear power, despite its potential benefits, carries inherent risks that cannot be ignored.

1. The Threat of Nuclear Accidents

• Nuclear disasters are not hypothetical; they have happened before, with devastating consequences.
• Accidents like Fukushima (2011), Chernobyl (1986), and Three Mile Island (1979) highlight the dangers.
• A nuclear accident affects three primary groups:
  1. The victims – residents and workers exposed to radiation.
  2. The operator – likely the Nuclear Power Corporation of India Limited (NPCIL).
  3. The supplier – the company providing the reactor and related technology.

2. The Economic and Environmental Costs

• Nuclear accidents cause long-term damage—both financially and environmentally.
• The Fukushima cleanup alone is estimated to cost ₹20 lakh crore to ₹46 lakh crore (¥35-¥80 trillion).
• In contrast, the Indian law caps operator liability at ₹1,500 crore, which is minuscule compared to potential damages.

Liability and the Legal Framework

1. Absolute Liability Principle

• After the Bhopal gas tragedy (1984), the Supreme Court of India ruled in the Oleum gas leak case (1986) that hazardous industries bear absolute liability for damages.
• This meant that in case of a disaster, companies responsible for hazardous industries would have unlimited liability.

2. Dilution of the Principle in 2010

• In 2010, the UPA government introduced the Civil Liability for Nuclear Damage Act (CLNDA), shifting primary responsibility to operators, capping liability at ₹1,500 crore, and protecting suppliers from major financial burdens.

3. Right of Recourse – A Small Protection for India

• The right of recourse was a crucial addition, allowing the operator to sue the supplier if the accident was caused by faulty equipment or substandard services.
• However, under pressure from nuclear suppliers and foreign governments, India has attempted to weaken this clause over the years.

Aspect	India (CLNDA 2010)	Japan (Fukushima Case)
Operator’s Liability Cap	₹1,500 crore	Unlimited, covered by TEPCO
Estimated Cleanup Cost	NA	₹20 lakh crore – ₹46 lakh crore
Supplier’s Liability	Limited right of recourse	No direct liability on supplier

Why Supplier Indemnity is Dangerous

Many countries have completely indemnified nuclear suppliers, largely due to corporate lobbying. However, historical evidence shows that supplier negligence has played a role in nuclear accidents:

1. The Fukushima Disaster (2011)

• The Mark 1 containment system used in Fukushima reactors had known design flaws since 1972.
• A U.S. Atomic Energy Commission official had warned that General Electric (GE), the designer, used faulty data in safety assessments.
• GE ignored these warnings, and yet, due to Japan’s liability laws, it has not paid any compensation for Fukushima.

2. Three Mile Island Disaster (1979)

• The Kemeny Commission found that supplier Babcock & Wilcox knew about a safety hazard before the accident but failed to act.
• Had the company addressed the issue, the disaster could have been prevented.

3. The Problem with Indemnity

• If suppliers are protected from liability, they have no incentive to ensure reactor safety.
• Without accountability, safety standards may decline, increasing the risk of future disasters.

Policy Reversals: India’s Weakening Stand on Liability

Since 2010, both UPA and NDA governments have tried to dilute supplier liability:

1. Post-2010 Dilution Attempts

• Under pressure from nuclear suppliers, the UPA government tried to weaken the right of recourse.
• BJP leader Arun Jaitley criticized these moves, stating that a “leopard never changes its spots.”

2. Policy Shift Under NDA Government

• After taking office, the NDA government further prioritized corporate interests over victim rights.
• In 2015, after U.S. President Barack Obama’s visit, India downplayed the right of recourse, signaling a shift towards supplier indemnity.

3. U.S. Lobbying for Legal Changes

• U.S. officials, including Ambassador Eric Garcetti, have lobbied to amend India’s liability laws.
• Their concerns include:
  • Future governments may increase liability, exposing suppliers to higher financial risks.
  • Legal accountability in India could create precedents in other countries.
  • Criminal prosecution of corporate executives in case of a disaster.

The Economic Pitfall: Are U.S. Reactors Worth It?

The leading American nuclear reactor on offer is the AP1000 from Westinghouse. However, its track record is far from impressive:

1. Construction Failures

• Four reactors were planned in the U.S.:
  • Two in South Carolina – abandoned after spending $9 billion due to delays and cost overruns.
  • Two in Georgia – completed at a cost of $36.8 billion, 250% over budget.

2. High Electricity Costs

• Even if built in India, AP1000 reactors would produce expensive electricity, making them uncompetitive with solar, wind, and other renewable sources.

3. The Illusion of Small Modular Reactors

• New concepts like Small Modular Reactors (SMRs), such as those by NuScale Power, are even less economical due to a lack of economies of scale.

Conclusion: A Dangerous Concession to Foreign Interests

Prime Minister Narendra Modi presents himself as a strong global leader, yet his government’s willingness to amend nuclear liability laws under U.S. pressure tells a different story.

If nuclear suppliers themselves refuse to accept even a minimal risk, why should Indian citizens bear the burden of potential disasters? Weakening supplier accountability puts Indian lives, safety, and financial stability at risk. Instead of making dangerous concessions, India must stand firm on nuclear liability laws, ensuring fair responsibility for all stakeholders.

FAQs

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Analysis of The Hindu Editorial 2 : Budgeting for gender-inclusive ‘Viksit Bharat’

Context

A gender-responsive budget is more than just an allocation of funds—it’s a powerful tool to drive social and economic change. By ensuring that women have equal access to resources, opportunities, and financial support, India can unlock the full potential of women-led development and accelerate progress toward Viksit Bharat (Developed India) 2047.

The Union Budget 2025-26 highlights a strong commitment to inclusive growth, recognizing women as a key pillar of national progress. With increased funding for gender-centric initiatives and efforts to boost female workforce participation, the budget signals a move toward greater gender equality. However, challenges remain, especially in bridging gender gaps in employment, financial independence, and access to social security.

Introduction

In her 2025-26 Budget Speech, Finance Minister Nirmala Sitharaman emphasized the government’s vision for Viksit Bharat, which includes:

• Zero poverty
• Universal good-quality school education
• 100% skilled labour with meaningful employment
• 70% female participation in economic activities
• India as the world’s food basket

By explicitly focusing on women as a priority group, the budget strengthens India’s commitment to gender-inclusive development. But is the current financial commitment enough to transform this vision into reality?

Gender Budget Allocation: A Milestone in Women’s Development

A major highlight of the Budget 2025-26 is the significant increase in the gender budget:

• 8.8% of the total Budget is now dedicated to gender-based initiatives, up from 6.8% in the previous year.
• The highest allocation in two decades—₹4.49 lakh crore—has been distributed across 49 Union Ministries.
• 12 additional ministries, including Railways, Ports & Shipping, and Pharmaceuticals, have adopted gender-sensitive budgeting.

Why This Matters?

This signals a whole-of-government approach to integrating gender equality in all sectors, moving beyond conventional areas such as education and healthcare to infrastructure, transportation, and industrial development.

Year	Gender Budget Allocation (as % of Total Budget)
2023-24	6.8%
2024-25	8.8%
Increase	2% (₹4.49 lakh crore allocation)

The Rise in Female Labour Force Participation

The Periodic Labour Force Survey (PLFS) has shown a steady increase in India’s Female Labour Force Participation Rate (FLFPR):

• 2021-22: 33%
• 2023-24: 42%
• Global Average: 47% (ILO Report)

While this improvement is promising, it is still 37 percentage points lower than men’s labour force participation (79%).

What’s Needed to Bridge the Gap?

To reach the ambitious target of 70% women in economic activities by 2047, India must invest in:
✅ Skill development programs
✅ Entrepreneurial support
✅ Employment generation schemes
✅ Access to productive resources
✅ Social security for working women

The Budget 2025-26 acknowledges these needs through increased funding for targeted schemes.

Major Budget Allocations for Women-Centric Schemes

Several key programs have seen increased funding to promote women’s workforce participation:

Scheme Name	Budget Allocation (₹ Lakh Crore)	% Directed Toward Women
Skill India Programme	₹1.24	52%
National Rural Livelihoods Mission (DAY-NRLM)	Increased	50%+
Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS)	Increased	Focus on rural women
PM Vishwakarma	New funding	Women artisans targeted
Krishonnati Yojana	Enhanced budget	Women in agriculture

This reflects a clear push for women’s economic inclusion, particularly in rural and informal sectors.

New Schemes to Strengthen Women’s Workforce Participation

Beyond existing schemes, new initiatives have been introduced to create employment and entrepreneurial opportunities for women:

1️⃣ Prime Minister Dhan-Dhaanya Krishi Yojana – Boosts women’s participation in agriculture & allied industries.
2️⃣ First-Time Entrepreneurs’ Scheme – Provides financial & skill-based support for women-led startups.
3️⃣ Sustainable Livelihood Initiative for Urban Workers – Aims to create stable, long-term jobs for women in urban areas.
4️⃣ Centers of Excellence for Make in India – Encourages women in STEM & manufacturing sectors.

Each of these programs contributes to increasing female workforce participation and economic independence.

Addressing Challenges in the Gig Economy

The Reality for India’s Working Women

• 90% of working women are engaged in the informal sector.
• Many have turned to gig work, which offers flexibility but lacks job security & fair wages.

How the Budget Supports Gig Workers

• Formalization of gig workers via:
  ✅ Identity cards
  ✅ Registration on the e-Shram portal
• Benefits include:
  ✅ Access to social security entitlements
  ✅ Financial inclusion opportunities

While this is a significant step forward, additional protections—like fair wages, maternity benefits, and job security—are crucial for ensuring sustainable livelihoods for gig workers.

Technology and AI: Empowering Women in the Future Workforce

The Budget allocates ₹600 crore under the India AI Mission to promote gender inclusivity in tech-driven fields:

• AI-based education initiatives
• Digital literacy programs for women
• Enterprise training using AI & automation

Why This Matters?

With AI redefining the job market, it is essential to prepare women for the digital economy, ensuring equitable workforce participation.

Women in Agriculture: Expanding Financial Access

Despite being key contributors to agriculture, women face systemic barriers in accessing credit and financial support.

Proposed Policy Reforms

🚜 Delinking Kisan Credit Cards from land ownership – Allows women farmers to access credit & loans.
📊 Gender-disaggregated data tracking – Helps evaluate effectiveness of financial schemes.

Expanding access to financial resources will significantly enhance crop productivity and rural incomes.

Women-Owned Enterprises: Unlocking Economic Potential

As per the Udyam portal:

• 20.5% of MSMEs are women-led enterprises.
• These businesses provide employment for 27 million people.

What’s Needed to Boost Women Entrepreneurs?

💰 Collateral-free loans
📈 Alternative credit scoring models
📚 Financial literacy programs

📊 Economic Projection:

• Establishing 30 million additional women-led businesses can generate 150-170 million new jobs by 2030.
• This would contribute to 25% of the employment needed for India’s working-age population.

Conclusion: Moving from Policy to Implementation

The Budget 2025-26 lays a strong foundation for gender-inclusive economic growth, but implementation is key.

Achieving 70% female workforce participation by 2047 requires:
✅ Sustained investment in women’s skills & employment
✅ Robust financial support for women entrepreneurs
✅ Policy enforcement in the gig economy
✅ Social norm transformation for gender equality

By ensuring gender-responsive budgeting, social security protections, and economic opportunities, India can position women as central drivers of national progress, ultimately fulfilling the vision of Viksit Bharat 2047.

FAQs

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