India Explores Opening Nuclear Sector to Foreign Investment

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Researched by Industrial Info Resources (Sugar Land, Texas)--India is considering allowing up to 49% foreign direct investment (FDI) in its nuclear energy sector, in a major shift aimed at boosting clean energy capacity. The investment cap would be implemented in phases, with an initial limit of 26% under review. This move aligns with India's goal to expand nuclear energy capacity from 8 gigawatts (GW) today to 40 GW by 2035, and further to 100 GW by 2047, as part of its long-term energy transition strategy.

Currently, the nuclear sector in India is restricted to public sector participation. To enable private and foreign investment, the government plans to amend the Atomic Energy Act and the Civil Liability for Nuclear Damage Act. These amendments were announced by Finance Minister Nirmala Sitharaman in the 2025 Union Budget, along with a INR 20,000 crore (US$2.3 billion) Nuclear Energy Mission to support research and development in small modular reactors (SMRs).

The government aims to make at least five SMRs operational by 2033, marking a significant step toward advanced nuclear technology. Foreign players like Russia's Rosatom (Moscow) and France's Electricite de France (EDF) (Paris) have already shown interest in partnering with India on SMRs and other nuclear projects.

Committees are currently finalizing changes to key laws, and stakeholder consultations are ongoing. If implemented, this FDI reform could attract significant international investment and help India meet its net-zero emissions target by 2070, while ensuring stable and clean power for its growing economy.

Industrial Info is tracking 16 capital-spending nuclear power projects, worth US$76 billion, in India. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can click here for the related project reports.

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