Page 14 - Policy Economic Report - Jan 2026

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

• Momentum to increase financing for nuclear energy is growing. The IAEA is expanding its
cooperation with a range of international financial institutions to support countries in exploring and
financing nuclear energy, including nuclear power plants (NPPs). These partnerships include engagement
with the WBG, the Asian Development Bank, the European Bank for Reconstruction and
Development and OPEC Fund. A total of 33 countries has endorsed the Declaration to Triple Nuclear
Energy, signalling a collective ambition to triple global nuclear energy capacity by 2050. The signatories
span a wide geographic range across continents and include newcomer countries such as El Salvador,
Ghana, Jamaica, Kazakhstan, and Rwanda.

At the UN Climate Change Conference (COP28) in Dubai 2023, nuclear energy was included in the Global
Stocktake, which called for its accelerated deployment alongside other low carbon energy sources.

• Nuclear Energy Can Contribute to Decarbonize Hard-to-Abate Sectors
High-temperature reactors, small modular reactors (SMRs) and hybrid systems can generate low-carbon
heat for industrial processes, in sectors such as steel, cement, and chemical production. Maritime
transport can be enabled by SMRs or microreactors for port electrification and onboard nuclear
propulsion.

• Technology Evolution and Innovation
Nuclear technology continues to evolve, to become more fit for purpose for future needs. New reactor
designs offer higher safety margins, improved efficiency and longer operating lifetimes, while small
modular reactors (SMRs) and other advanced systems provide greater flexibility in how and where
nuclear power can be deployed. SMRs are designed to shorten construction timelines, have lower
upfront capital requirements, and provide enhanced load-following capabilities, allowing them to
complement variable renewable energy sources such as wind and solar.

5. Indian Economy

India’s economic growth

The Economic Survey 2025-26

The Economic Survey 2025-26 presented by Smt. Nirmala Sitharaman, Minister of Finance and Minister
of Corporate Affairs, in January 2026, provides a comprehensive analysis of India's economic performance
and prospects. Key highlights from the survey include:

• Growth Outlook: GDP and Demand Conditions

India’s growth outlook remains robust, underpinned by strong macroeconomic fundamentals and broad-
based demand momentum. As per the First Advance Estimates, real GDP and Gross Value Added (GVA)
are projected to grow by 7.4% and 7.3% respectively in FY26.

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