The central government, led by Prime Minister Narendra Modi, has announced a Nuclear Energy Mission and plans to change the laws related to nuclear energy. This move comes 17 years after India signed a nuclear deal with the U.S.
Big Nuclear Announcement in Budget 2025
In the Union Budget 2025, Finance Minister Nirmala Sitharaman said that the government will invest ₹20,000 crore in this mission. The focus will be on developing Small Modular Reactors (SMR), a new type of nuclear technology.
She also stated that India aims to generate at least 100 GW (Gigawatts) of nuclear energy by 2047, which will help the country shift to cleaner energy sources.
Prime Minister Narendra Modi has praised the government's decision to involve the private sector in India's nuclear energy sector as "historic." He emphasized that this initiative will significantly contribute to the nation's development in the coming years.
The Indian government has also announced plans to change its nuclear liability laws to encourage private and foreign investments in the nuclear energy sector. This move aims to help implement the civil nuclear agreement between India and the United States, which was finalized about 16 years ago.
Finance Minister Nirmala Sitharaman, during her budget speech, pointed to the need for these changes to promote private sector participation in India's nuclear energy initiatives. She stressed that developing at least 100 gigawatts (GW) of nuclear energy by 2047 is essential for the country's energy transition efforts.
The United States has lifted restrictions on three Indian nuclear entities: the Bhabha Atomic Research Centre (BARC), the Indira Gandhi Atomic Research Centre (IGCAR), and Indian Rare Earths (IRE). This move is expected to open new avenues for collaboration between India and the U.S. in the civil nuclear field.
This decision came after when in January 2025, U.S. National Security Advisor Jake Sullivan announced that the United States is finalizing steps to remove longstanding regulations hindering civil nuclear cooperation with Indian firms. This initiative aims to facilitate collaboration between the two nations in the nuclear energy sector.
In July 2005, India and the United States announced an ambitious plan to cooperate in civil nuclear energy following a meeting between then Prime Minister Manmohan Singh and President George W. Bush. The historic civil nuclear agreement was finalized around three years later after a series of negotiations.
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