India Energy Small Modular Reactors

India’s expanding civil nuclear energy sector presents significant opportunities for U.S. companies, particularly in the Small Modular Reactors (SMR) market. With India’s goal to dramatically increase nuclear power capacity and amend restrictive policies, U.S. businesses have a unique chance to enter and shape this growing market.

India currently operates 20 nuclear reactors, generating approximately 6,920 MW of electricity. By 2031-32, India aims to reach 22,480 MW, with the Nuclear Power Corporation of India Limited (NPCIL) planning to deploy 21 reactors, totaling 15,300 MW, while Bharatiya Nabhikiya Vidyut Nigam Limited (BHAVINI) oversees the construction of nine reactors with a combined capacity of 7,300 MW and involved in pre-project activities for 12 additional reactors totaling 8,000 MW, including two 500 MW fast breeder reactors (FBRs) twin units.

The 2025-26 Union Budget sets an ambitious target to achieve 100 GW of nuclear power capacity by 2047, and includes the launch of the Nuclear Energy Mission, which dedicates federal funds to develop and deploy SMRs. The government will allocate $2.4 billion for R&D and aims to have at least five indigenously designed and developed SMRs by 2033. Planned amendments to the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act of 2010 could open the market to private investment, enabling U.S. technology imports. The Atomic Energy Act of 1962 currently limits private ownership of nuclear power generation, with only government-owned entities authorized to own and operate nuclear plants.

Nuclear energy contributes about 3% to India’s energy mix and is projected to reach 40-50% in the near future, highlighting nuclear energy as the ideal baseload power. To advance this growth, the Indian government is looking to add SMR designs to the energy mix by ensuring long-term fuel supply, addressing spent fuel processing and disposal, and obtaining approval from India’s Atomic Energy Regulatory Board (AERB) for the deployment of SMRs at selected sites.

Opportunities for U.S. Companies:

The currently operational coal plants are due to be retired over the next 30 years, with 20 GW already offline. The retirement of coal plants presents a $550 billion opportunity to repurpose sites for SMRs. SMRs will also help contribute to the country’s clean hydrogen economy and address the decarbonization needs of key sectors such as transportation, petrochemicals, refineries, fertilizers, steel, aluminum, and cement.  SMRs can bolster India’s ambitious goal in data center expansion by delivering 24/7 reliable power to specific sites.

For entry into the Indian market, U.S. companies should identify quality partners who know the business landscape well. Strategic planning, due diligence, and consistent follow-ups are the prerequisites for success in India. The U.S. Commercial Service in India offers customized solutions to help U.S. businesses in the Indian market.

For more information regarding upcoming events and opportunities in this sector, U.S. firms can contact the U.S. Commercial Service India energy team or reach out to your local U.S. office.