DPG Policy Brief
India’s Evolving Nuclear Energy Landscape
Date: March 26, 2025
In the Union Budget of 2025-26, the Indian government launched a “Nuclear Energy Mission”, allocating Rs.20,000 crore (US$ 2.33 billion) for the research and development of Small Modular Reactors (SMRs). The government has also set an ambitious target of 100 GW of nuclear power capacity by 2047.
India’s nuclear power journey has been marked by international cooperation in the years after its independence, followed by decades of sanctions and isolation, and then a gradual reintegration into global nuclear supply chains. International sanctions imposed after India's 1974 “peaceful nuclear explosion” proved to be a setback for the nuclear power sector, but also forced India to achieve self-sufficiency in all aspects of nuclear power generation.
By the early 2000s, geopolitical dynamics led to the emergence of a growing partnership between the US and India. In 2008, the two countries signed a 123 Agreement permitting civil nuclear trade. India also obtained a waiver from the Nuclear Suppliers Group, gaining access to foreign nuclear technology and fuel. However, the Civil Liability for Nuclear Damage Act, passed in 2010, imposed very strict liability clauses for suppliers, delaying the finalisation of contracts with Western partners.
India currently operates 24 nuclear power plants with an installed capacity of 8180 Mwe, with plans to increase this to 22,480 MWe by 2031-32. Even if this target is achieved, adding an additional 78 GW of nuclear power in the next 15 years to reach 100 GW by 2047 will be extremely challenging.
India clearly needs to complement its indigenous efforts with high-output reactors in collaboration with foreign partners. However, India has only been moderately successful in this regard. While Russia is building nuclear reactors in India, negotiations with French and US companies have not been concluded due to India's stringent nuclear liability law.
The government has now proposed opening the nuclear sector to private players. This is a positive step, but it will require amending the Atomic Energy Act (AEA) of 1962, which stipulates that only government-owned or controlled entities can manage nuclear energy production. The government has announced that it is reviewing the nuclear liability law and the AEA.
As the nuclear power sector expands, greater attention must be paid to safety. A proposal to establish a Nuclear Safety Regulatory Authority (NSRA) has been under consideration since 2011, and a decision should be taken soon. The government must also engage with the public to increase acceptance of nuclear power. Public protests have led to delays in commissioning or relocating power plants in India.
India's path to civil nuclear energy expansion holds promise, but comprehensive reforms are required to transform this into reality and achieve the ambitious goals set for 2047.
To read this DPG Policy Brief Vol. X, Issue 10, please click "India’s Evolving Nuclear Energy Landscape”.
India’s nuclear power journey has been marked by international cooperation in the years after its independence, followed by decades of sanctions and isolation, and then a gradual reintegration into global nuclear supply chains. International sanctions imposed after India's 1974 “peaceful nuclear explosion” proved to be a setback for the nuclear power sector, but also forced India to achieve self-sufficiency in all aspects of nuclear power generation.
By the early 2000s, geopolitical dynamics led to the emergence of a growing partnership between the US and India. In 2008, the two countries signed a 123 Agreement permitting civil nuclear trade. India also obtained a waiver from the Nuclear Suppliers Group, gaining access to foreign nuclear technology and fuel. However, the Civil Liability for Nuclear Damage Act, passed in 2010, imposed very strict liability clauses for suppliers, delaying the finalisation of contracts with Western partners.
India currently operates 24 nuclear power plants with an installed capacity of 8180 Mwe, with plans to increase this to 22,480 MWe by 2031-32. Even if this target is achieved, adding an additional 78 GW of nuclear power in the next 15 years to reach 100 GW by 2047 will be extremely challenging.
India clearly needs to complement its indigenous efforts with high-output reactors in collaboration with foreign partners. However, India has only been moderately successful in this regard. While Russia is building nuclear reactors in India, negotiations with French and US companies have not been concluded due to India's stringent nuclear liability law.
The government has now proposed opening the nuclear sector to private players. This is a positive step, but it will require amending the Atomic Energy Act (AEA) of 1962, which stipulates that only government-owned or controlled entities can manage nuclear energy production. The government has announced that it is reviewing the nuclear liability law and the AEA.
As the nuclear power sector expands, greater attention must be paid to safety. A proposal to establish a Nuclear Safety Regulatory Authority (NSRA) has been under consideration since 2011, and a decision should be taken soon. The government must also engage with the public to increase acceptance of nuclear power. Public protests have led to delays in commissioning or relocating power plants in India.
India's path to civil nuclear energy expansion holds promise, but comprehensive reforms are required to transform this into reality and achieve the ambitious goals set for 2047.
To read this DPG Policy Brief Vol. X, Issue 10, please click "India’s Evolving Nuclear Energy Landscape”.
