Powering Up: India Welcomes Foreign Investment in Nuclear Energy

The Indian government is exploring the phased opening of its nuclear energy sector to foreign direct investment (FDI), with an initial cap of 26%, potentially increasing to 49% following a review. The move aims to attract global capital and accelerate India's nuclear power generation target of 40 GW by 2035, up from the current 8 GW.

To facilitate foreign and private sector participation, amendments are being proposed to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act. These reforms were first announced by Finance Minister Nirmala Sitharaman in the 2025 Budget, alongside the launch of a ₹20,000 crore Nuclear Energy Mission. The mission focuses on developing small modular reactors (SMRs), with a goal to commission at least five SMRs by 2033.

International players such as Rosatom and EDF have expressed interest in partnering with India. Legislative committees are currently drafting the necessary amendments, while a long-term roadmap to achieve 100 GW of nuclear capacity by 2047 is also underway. This roadmap will guide the deployment of advanced nuclear technologies as part of India's broader energy transition strategy.

News by Rahul Yelligetti.