Editorials/Opinions Analysis For UPSC 01 October 2024

Contents:

1. India’s Silver Dividend: Transforming Challenges into Opportunities for an Aging Population
2. Having Private Participation in India’s Nuclear Energy Sector
3. Steady but Slow

India’s Silver Dividend: Transforming Challenges into Opportunities for an Aging Population

Context:
With a rapidly growing elderly population, India faces the dual challenge of providing adequate healthcare and ensuring the economic inclusion of its senior citizens. While rising longevity and demographic shifts put pressure on social security and healthcare systems, they also present an opportunity to harness the potential of the “silver economy.” This emerging segment could contribute significantly to economic growth if addressed with strategic reforms and policies.

Relevance: General Studies Paper 1 (Society and Demographics) and General Studies Paper 2 (Social Justice, Welfare of Vulnerable Sections).

Mains Question: Discuss the challenges faced by India’s elderly population and suggest strategies to convert these challenges into opportunities, focusing on healthcare, financial inclusion, and social security. (250 words)

• Rising Elderly Population and Its Impact:
  India’s elderly population is expanding rapidly, projected to reach 13.2% of the total population by 2031 and 19% by mid-century. This demographic shift is accompanied by an increase in life expectancy, creating pressure on healthcare and social security systems. The economic burden of this transition is significant, with healthcare consumption by the elderly currently estimated at $7 billion.
• Healthcare Challenges and Need for Reforms:
  Three-quarters of India’s elderly suffer from chronic ailments, and a quarter face difficulties with daily living activities. One-third experience depressive symptoms. Addressing these issues requires a multi-sectoral approach, involving healthcare, social, and economic reforms. Expanding tele-consultation services and training skilled healthcare workers can improve the quality of life for seniors.
• Digital and Financial Inclusion:
  The digital divide is a major barrier for the elderly. Empowering them through digital literacy and targeted financial schemes is essential. Programs like the Ayushman Bharat (AAM) and Pradhan Mantri Vaya Vandana Yojana (PMVVY) are steps in the right direction, but more is needed. Tailored financial products, like health insurance coverage up to ₹5 lakhs for every individual over 70 years, could ease financial insecurities.
• Social Inclusion and Support Systems:
  Social isolation is another critical issue. Establishing peer support groups and educating communities on elder care can foster inclusion. Legal awareness on entitlements, inheritance, and succession planning is equally vital to safeguard the rights of senior citizens.
• The Silver Economy:
  The “silver economy,” estimated at ₹73,082 crore, is poised to grow manifold over the next few decades. Seniors aged 45-64, with significant purchasing power, constitute a major consumer segment. Health and wellness-driven businesses, senior-centric housing, and leisure industries can tap into this market, turning a demographic challenge into an economic opportunity.
• Government Initiatives and Policy Support:
  The government has recognized this opportunity by launching initiatives like the Senior Able Citizens for Re-Employment in Dignity (SACRED) portal to connect seniors with job providers. Another effort is the Senior Citizen Ageing Growth Engine (SAGE) scheme, designed to support elder care startups.
• Creating an Elder-Friendly Environment:
  Policy reforms should focus on a comprehensive eldercare system, including mental health services, nutrition support, and age-friendly infrastructure. This would enable the elderly to maintain independence and contribute to the economy.

Conclusion:
India’s aging population presents both challenges and opportunities. By focusing on healthcare, social security, and economic inclusion, India can transform its growing elderly demographic into a silver dividend. Strengthening the silver economy, creating supportive social structures, and ensuring digital and financial inclusion will be key to leveraging the potential of this emerging segment.

Latest Data and Numbers:

• India’s elderly population: 13.2% by 2031, 19% by mid-century.
• Silver economy potential: ₹73,082 crores, with expected manifold growth.
• Healthcare costs for the elderly: Estimated at $7 billion currently.

By implementing targeted reforms, India can ensure a dignified life for its elderly population and harness their potential to contribute positively to the economy.

Having Private Participation in India’s Nuclear Energy Sector

Context:
In the Union Budget for FY 2024-25, the Indian government announced its intent to expand nuclear energy through private sector partnerships. This includes developing Bharat Small Modular Reactors (BSMR) and exploring newer nuclear technologies. The move is aligned with India’s goal of achieving 500 Gigawatts of non-fossil fuel-based energy by 2030, as pledged at the COP26 Summit. However, India’s nuclear sector, governed by the Atomic Energy Act (1962), restricts private sector participation, leading to debates on regulatory, safety, and liability challenges.

Relevance to GS Subject: General Studies Paper 3 (Science and Technology)

Mains Question: Discuss the potential and challenges of involving private players in India’s nuclear energy sector. How can regulatory frameworks be revised to facilitate such participation while ensuring safety and compliance? (250 words)

• Current Scenario and Policy Framework:
  The Indian nuclear energy sector is governed by the Atomic Energy Act, 1962 (AEA), which empowers only the central government to “produce, develop, use and dispose of atomic energy.” This restricts private participation. The 1987 Amendment to the AEA allows only central government entities to engage in nuclear energy projects.
• Recent Announcements:
  In 2024, the Indian government proposed expanding the role of the private sector in nuclear energy, particularly for research and development (R&D) of Small Modular Reactors (SMRs). This move is intended to accelerate technological development and reduce dependence on imported nuclear technology.
• Legal and Regulatory Hurdles:
  Section 3 of the AEA prohibits private sector involvement in R&D and operation of nuclear energy facilities. Additionally, the Civil Liability for Nuclear Damage Act (CLNDA) imposes absolute liability on the operator, deterring private entities from entering the sector. The recent Supreme Court judgment (September 17, 2024) reaffirmed that private firms cannot exploit atomic energy unless the AEA is amended.
• Safety and Security Concerns:
  Involving private entities raises questions about safety and compliance. The Chernobyl and Fukushima disasters serve as reminders of the catastrophic risks associated with nuclear energy. Any inclusion of private players would necessitate stringent safety oversight and clear liability structures.
• Proposed Reforms:
  The government can consider allowing private firms to partner with public sector enterprises like the Nuclear Power Corporation of India Limited (NPCIL) in specific areas, such as infrastructure development and component manufacturing. Amending the AEA to redefine private sector roles and strengthening the regulatory body—the Atomic Energy Regulatory Board (AERB)—would be crucial.
• Addressing Liability Issues:
  One of the key challenges is the Civil Liability for Nuclear Damage Act (CLNDA), which places absolute liability on operators, making private entities wary. Introducing a liability pool or insurance framework could mitigate risks and attract private investment.
• Opportunities for Growth:
  With private sector participation, India could fast-track the development of newer technologies like SMRs, which are safer, more cost-effective, and flexible in deployment. Private investments can also spur innovation, bringing advanced safety features and global best practices into the domestic nuclear energy ecosystem.
• International Models and Lessons:
  Countries like the US and the UK have allowed private participation through public-private partnerships, balancing regulatory oversight with economic incentives. Learning from these models, India can create a hybrid framework that ensures safety without stifling private sector involvement.

Latest Data and Numbers:

• India’s nuclear capacity: ~6,780 MW (as of 2023).
• Targeted non-fossil fuel energy capacity: 500 GW by 2030.
• Proposed investment in Bharat Small Modular Reactors: ₹526 billion.

Conclusion:
India’s nuclear energy sector is at a critical juncture, poised between tradition and transformation. Enabling private participation could unlock significant technological advancements and support the country’s clean energy transition. However, achieving this requires comprehensive legal reforms, strong regulatory frameworks, and clear safety protocols. By creating a robust and balanced policy environment, India can leverage its private sector’s potential while maintaining the highest safety standards.

The path forward lies in fostering collaboration between public and private entities, supported by a transparent and adaptive regulatory structure that promotes innovation without compromising safety and public trust.

Steady but Slow

Context:
India’s space program has made impressive strides, with achievements like the Chandrayaan-3 soft landing. However, resource constraints and a “one mission at a time” strategy limit its ability to respond rapidly to new opportunities in space exploration. In contrast, leading space agencies like NASA manage multiple flagship missions simultaneously, enabling them to pursue complex scientific and commercial objectives. The cancellation of NASA’s VIPER mission highlights the need for robust planning, adaptability, and adequate resources to sustain high-impact space missions.

Relevance to GS Subject: General Studies Paper 3 (Science and Technology)

Mains Question: Examine the challenges faced by ISRO in executing multiple flagship space missions. Discuss strategies to enhance India’s capability to handle high-impact missions in the global space race. (250 words)

• Current Scenario and Achievements:
  India has established itself as a prominent player in the space domain, especially after the successful Chandrayaan-3 lunar landing. The mission reinforced India’s position among elite spacefaring nations capable of autonomous lunar soft-landing.
• Limitations of Resource Allocation:
  Despite its achievements, ISRO is often constrained by limited resources, both in terms of funding and human capital. The organization typically focuses on a “one mission at a time” strategy, which hampers its ability to run parallel high-impact missions. This approach limits its agility to exploit emerging opportunities, as evident in the delayed approval for Chandrayaan-4.
• Comparison with Global Players:
  NASA’s cancellation of the VIPER mission due to cost overruns demonstrates the challenges of managing multiple large-scale projects. However, NASA’s ability to juggle several missions through efficient resource allocation sets it apart. Similarly, China’s rapid expansion in the space domain, with its complex lunar and planetary missions, further underscores the need for a more ambitious and well-funded Indian space program.
• Geopolitical Implications:
  The international race back to the moon is driven by strategic, commercial, and scientific interests. VIPER’s cancellation provides an opportunity for other nations, particularly China, to strengthen their lunar exploration capabilities. India must strategically position itself to capitalize on this evolving landscape.
• Missed Opportunities:
  The lack of timely decision-making has prevented ISRO from pursuing missions like the ‘Lunar Polar Explorer’ it is planning with Japan. Such missions could position India as a significant player in resource prospecting and space mining—areas poised to become highly lucrative in the future.
• Strategic Recommendations:
  • Increase Funding and Resources:
    Expanding ISRO’s budget would enable the organization to simultaneously undertake multiple missions, improving efficiency and innovation.
  • Develop Multi-Mission Capabilities:
    Establish a separate wing within ISRO to manage flagship missions, while existing divisions handle routine satellite launches.
  • Leverage International Collaboration:
    Partnering with agencies like NASA and JAXA on complex projects can help India share costs and enhance technological capabilities.
  • Establish a Commercial Arm:
    Strengthen the private sector’s role in routine satellite and commercial launches, allowing ISRO to focus on high-impact research missions.

Latest Data and Numbers:

• India’s budget allocation for space: $1.8 billion (2023-24).
• NASA’s annual budget: $25 billion.
• Chandrayaan-3’s success cost: ₹615 crores (~$75 million).

Conclusion:
While India’s space program is making steady progress, it needs to transition to a more dynamic and multi-mission model to realize its full potential. Adequate funding, strategic planning, and global collaborations will be key in transforming ISRO into a world leader capable of handling multiple flagship projects simultaneously. The focus should be on scaling up its capabilities to ensure that India not only competes but also leads in the new space race.

Strategic investments in talent, technology, and infrastructure can enable ISRO to handle multiple high-impact missions, paving the way for greater achievements in space exploration and strategic positioning on the global stage.