Indian Council of World Affairs

Abstract: India is positioning nuclear power as a secure, low-carbon, and reliable component of its future energy mix capable of supporting national energy security and long-term sustainability goals. With the 500 MWe PFBR successfully attaining criticality, India has taken the first step in providing long-term energy security and advancing indigenous nuclear technology capabilities. 

Introduction 

Nuclear energy is witnessing a measurable resurgence globally, with countries exploring nuclear energy as a strategic source to address the growing demand for energy, energy security concerns, and climate change challenges. According to the International Atomic Energy Agency (IAEA), at the end of 2024, global operational nuclear power capacity was 377 GE(e), generated by 417 reactors across 31 Member States.[i] IAEA projects, this low-carbon energy capacity is expected to nearly double by 2050 to meet global climate and energy security targets. 

A major contributor to this growth in nuclear energy will be existing and new reactors in China and India. This paper outlines the reasons for the renewed interest in nuclear energy. It examines India’s policy outlook and outlines the geostrategic importance of nuclear energy in achieving India’s long term development goals. 

Nuclear Energy: The Return to Global Energy Mix 

It is increasingly becoming clear that the energy challenge lies in delivering growing amounts of modern energy services compatible with sustainable economic development while adhering to climate agenda goals. Though concerns regarding nuclear safety persists, there is a noticeable shift in the debate, with nuclear energy increasingly viewed as a strategic solution for meeting ambitious development goals, mitigating climate change, and strengthening energy security.

Climate change has brought the focus to the need to identify low-carbon and non-fossil fuel sources of energy. Nuclear power is well suited to replace thermally generated power as a low-emissions energy source. Unlike renewable sources of energy, such as solar and wind, nuclear power is unaffected by the weather. Nuclear power plants can provide a continuous and reliable supply of energy because they operate at full capacity nearly uninterrupted, providing a stable source of “baseload” power.[ii]

Another critical reason for renewed interest in nuclear energy is energy security concerns. There has been a visible transformation in the energy markets as a result of the ongoing conflicts in the Middle East and between Russia and Ukraine. The volatility in the markets and supply chain disruptions have led nations to find energy sources that are free from geopolitical instability. Governments and energy-intensive firms are looking at nuclear energy with renewed interest as a stable investment that will help address the increasing demand for electrification. 

This is increasingly becoming a geostrategic imperative as electricity demand is projected to grow strongly over the coming decades. This rising demand stems not only from household’s use but also from expanding digital infrastructure, data centres, industrial electrification and the growing adoption of electric vehicles. 

Overall, nuclear energy is being considered as part of the energy security outlook to secure supplies but also to ensure a ready source of energy to maintain industrial competitiveness, especially in the technology sector. This renewed momentum is reflected in the commitments made at the United Nations Climate Change Conference (COP28) in 2023, where more than 20 countries committed to at least tripling global nuclear power capacity by 2050. The goal is further supported by hundreds of companies, major banks and financial institutions, and tech companies, including Google, Amazon, and Meta[iii], which are going to use increasing amounts of energy to remain technologically competitive. With major industry invested, it is hoped that this commitment will bring much-needed support and investment to nuclear energy development. 

Nuclear energy research and development, especially in reactor designs, are incorporating higher safety margins, improved efficiency and longer operating lifetimes. The developments in Small Modular Reactors (SMRs) and other advanced designs promise faster construction, smaller scale and potentially lower costs. Lower costs in reactor settings will help ensure that nuclear energy remains price comparative with fossil alternatives as well as other sources of non-fossil fuels. 

Nuclear Energy and India 

India’s energy transition is closely linked to its development priorities, increasing the need to have a reliable and affordable energy source. Rising electricity demand, rapid industrial growth, and a push to non-fossil fuel use in the transport sector have warranted the need for an energy system that is scalable, resilient, and a low-carbon option. In this context, nuclear energy plays a critical role in supporting a development-led transition to bring economic growth and reduce poverty as India aims to become a developed nation by 2047, the centenary of its independence. The government has announced the nuclear mission aims to generate 100 gigawatts (GW) of nuclear energy by 2047, constituting 10 per cent of India's total energy needs.[iv] The mission also aims to help India achieve its climate agenda goals by 2070 while reducing fuel import vulnerabilities. 

India’s Nuclear Power Programme: The Three-stage Strategy 

India’s nuclear power programme is built on more than six decades of expertise, a globally recognised safety record, mature institutions, proven indigenous manufacturing capabilities, and an integrated closed fuel-cycle strategy. Together, these strengths support the ambitions as outlined in the nuclear mission. 

India has a three-stage nuclear strategy[v] that has developed as a result of a combination of resource constraints due to sanctions, restricted access to the global nuclear industry, geopolitical compulsions, and a desire to build long-term energy security and resource independence. Due to limited access to natural uranium, the phased approach prioritises optimal use of this resource in the near term, with progressive development in fuel recycling capabilities and an eventual transition to thorium-based systems in the long term. Each stage of the nuclear programme feeds into the next, making India's nuclear programme one of the most forward-looking energy strategies in the world. This strategy has ensured that India has been able to pursue nuclear energy development despite external constraints while laying the foundation for long-term fuel sustainability and technological self-reliance. 

Current Status of India’s Nuclear Energy Capacity 

From its first commercial nuclear power plant capacity of 160 MWe in 1960, India is presently in Stage One of its nuclear power programme with a total installed nuclear energy capacity of about 8.8 GW located across seven sites dominated by Pressurised Heavy Water Reactors (PHWRs). In March 2025, Unit 7 of the 2 x 700 MW Rajasthan Atomic Power Project (RAPP) at Rawatbhata was successfully connected to the grid.[vi] In another milestone, in April 2026, the 500 MWe Prototype Fast Breeder Reactor (PFBR) successfully attained first criticality (the start of controlled fission chain reaction), marking the first step in providing long-term energy security and advancing indigenous nuclear technology capabilities.[vii] With this achievement, India has officially entered Stage II and continues to be in the research phase for its Stage III development plans. 

To further build on existing technical maturity, the government under the nuclear energy mission has allocated INR 20,000 crore to develop at least five domestically designed and operational Small Modular Reactors (SMRs) by 2033. These ambitions represent a strategic shift, positioning atomic energy as an integral component of India’s 21st century energy portfolio and a vital driver of economic growth towards realising ‘Viksit Bharat’. 

Achieving these ambitious targets requires combining domestic strengths with strategic international partnerships. To this goal, the Indian government has initiated the opening of the nuclear sector to private enterprises. This initiative is to augment its stress on diversifying its international cooperation to secure long-term uranium supplies and build technological collaborations and cooperation in research and development. This diversification strategy has meant that India is sourcing fuel from partners in Central Asia and North America, building technological partnerships with Western and Eastern powers while undertaking domestic reforms that will further propel the industry. 

India has also amended its primary law governing nuclear energy, called the Atomic Energy Act (1962),[viii] with the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Act, 2025 (SHANTI) Act[ix]. The Act aims to allow private companies to engage in non-strategic segments of the nuclear industry, reforms the liability regime to lower risks for suppliers, and establish a clear legal system for managing the entire civil nuclear process. By enabling private firms to participate in reactor manufacturing, construction, financing, and selected operational roles, the Act aims to mobilise capital, strengthen domestic manufacturing, and support the deployment of Small Modular Reactors (SMRs) at scale. It also enables the Nuclear Power Corporation of India (NPCIL) to form joint ventures with other Public Sector Undertakings (PSUs) for setting up nuclear power plants. The expectation is that the PSU partner will bring investible surplus capital, while the NPCIL brings nuclear expertise and keeps a controlling stake. 

Along with changes in its laws, innovation in nuclear reactor technologies will remain an important component of India’s nuclear energy and clean energy targets. SMRs are expected to be the drivers of the next generation of nuclear energy by proving to be less expensive, allowing faster deployment and making them suitable for new locations, such as industrial hubs and remote areas. In India, the Department of Atomic Energy (DAE) has undertaken design and development works on SMRs, such as the 220 MWe Bharat Small Modular Reactor (BSMR-200) and the 55 MWe Small Modular Reactor (SMR-55) in brownfield sites for repurposing retiring fossil fuel-based power plants, captive plants for energy-intensive industries, and off-grid applications for remote locations.[x] Additionally, up to 5 MWth High-Temperature Gas-Cooled Reactors (HTGRs) are also being designed and developed. The reactor heat can also be utilised for hydrogen generation by coupling with suitable thermochemical processes thereby supporting the decarbonisation of the industrial and transport sectors.[xi] 

India is currently pursuing a two-pronged strategy that comprises, continued deployment of 700 MWe indigenous PHWRs with the development and phased deployment of SMRs. These developments will help India strengthen long-term fuel sustainability needs and enhance India’s energy security. As stated before, India’s nuclear power programme has evolved under the constraint of limited domestic uranium resources, a factor that has shaped reactor choices, fuel strategies and international engagement. 

Conclusion

India’s nuclear programme aims to progress along a structured path. The combined focus on indigenous design, institutional coordination, and regulatory modernisation provides a strong foundation for sustained capacity growth in the nuclear sector. By progressively integrating new and proven technologies with innovative implementation models, India is positioning nuclear power as a secure, low-carbon, and reliable component of its future energy mix capable of supporting national energy security and long-term sustainability goals. It will support India’s plans to become energy independent and to have self-sufficiency in energy resources in a bid to make sure geopolitical tensions do not hinder its development goals. Nuclear energy also requires policy continuity and political will. India has been one of the few countries where nuclear energy has continued to remain a part of the energy mix, gaining support across the party lines. India’s goal is to increase the share of nuclear energy in its energy mix not only to meet its climate pledges but also to emerge as a global leader in the peaceful and productive use of nuclear energy.

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*Dr. Stuti Banerjee, Senior Research Fellow, Indian Council of World Affairs, New Delhi.
Disclaimer: Views expressed are personal.

Endnotes

[i] International Atomic Energy Agency, “Nuclear Power Reactors In The World 2025 Edition,” https://www-pub.iaea.org/MTCD/publications/PDF/RDS-2-45_web.pdf,Accessed on July 06, 2026.

[ii] Base load: The minimum amount of electric power delivered or required over a given period of time at a steady rate.

[iii] World Nuclear Association, “Global Energy Developments’ https://world-nuclear.org/our-association/publications/world-nuclear-outlook-report/global-energy-developments, Accessed on July 07, 2026.

[iv] Press India Bureau, “Homi Bhabha's pledge stands vindicated by PM Narendra Modi with the launch of "Nuclear mission" to meet India's increasing requirements through environment friendly clean energy, March 27, 2025,” https://www.pib.gov.in/PressReleasePage.aspx?PRID=2115857®=48&lang=2, Accessed on July 07, 2026

[v] The three stages are: Stage 1: Pressurised Heavy Water Reactors (PHWRs) Natural uranium is used as fuel in PHWRs to generate power. The spent fuel from these reactors produces plutonium, which becomes the primary input for the next stage. Stage 2: Fast Breeder Reactors (FBRs)-The plutonium obtained from Stage 1 is used as fuel in Fast Breeder Reactors, which generate more fuel than they consume. The PFBR at Kalpakkam marks India's entry into this stage. These reactors will be used to breed Uranium-233 from thorium, laying the groundwork for Stage 3. Stage 3: Thorium-Based Reactors- This stage will harness India's vast thorium reserves at scale, using the Uranium-233 bred in Stage 2 as fuel. Thorium is considered a practically vast energy source and this stage holds the key to India's long-term energy security.

[vi] Press Information Bureau, “Rajasthan's RAPP-7 Unit Joins Northern Grid, Marking Key Milestone, March 17, 2025,” https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2111887®=48&lang=2, Accessed on  July 08, 2026.

[vii] Press Information Bureau, “Historic Milestone: India’s 500 MWe Prototype Fast Breeder Reactor Achieves First Criticality, April 07, 2026,” https://www.pib.gov.in/PressReleasePage.aspx?PRID=2249576®=3&lang=2, Accessed on July 08, 2026.

[viii] The text of the Act is available at https://www.indiacode.nic.in/bitstream/123456789/1413/1/A1962-33.pdf

[ix] The text of the Act is available at https://prsindia.org/files/bills_acts/acts_parliament/2025/The_SHANTI_Act_2025.pdf.

[x] Press Information Bureau, “Parliament Question: Development In Nuclear Energy, April 01, 2026,” https://www.pib.gov.in/PressReleasePage.aspx?PRID=2247967®=3&lang=1, Accessed on July 07, 2026.

[xi] Ibid.