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India May Allow Up to 49 percent FDI in Nuclear Energy Sector in Phased Manner

India is considering opening up its nuclear energy sector to foreign direct investment (FDI) in a phased approach, potentially allowing up to 49 percent FDI over time. Initially, the cap may be set at 26%, with future increments contingent on reviews. This marks a significant policy shift, as the nuclear sector is currently closed to private and foreign investment and remains on the negative list for FDI.

To facilitate this move, the government plans to amend the Atomic Energy Act and Civil Liability for Nuclear Damage Act—a commitment announced by Finance Minister Nirmala Sitharaman in the 2024 Budget. These changes aim to enable private participation, both domestic and international, in the goal to develop 100 GW of nuclear power capacity by 2047, with a short-term target of 40 GW by 2035 (from the current 8 GW).

A new Rs20,000 crore Nuclear Energy Mission will support the development of Small Modular Reactors (SMRs), with at least five indigenous SMRs expected to be operational by 2033.

Foreign players such as Rosatom (Russia) and EDF (France) have already expressed interest in India’s emerging nuclear opportunities. The planned roadmap for 100 GW of nuclear capacity will outline all relevant technologies, with stakeholder consultations currently underway to finalize the legislative changes.