The government is considering opening its nuclear energy sector to foreign direct investment (FDI) by allowing up to 49 percent in a phased manner.

Initially, the government may permit 26 percent FDI, with scope to raise the limit after a review. This proposal aims to attract global investment and support India's plan to expand nuclear power generation capacity to 40 GW by 2035, from the current eight GW. The Atomic Energy Act and the Civil Liability for Nuclear Damage Act will be amended to enable private and foreign participation.

Finance Minister Nirmala Sitharaman had announced the proposed legal reforms in the 2025 Budget and introduced a Rs 20,000 crore Nuclear Energy Mission to develop small modular reactors (SMRs), with a target to commission at least five SMRs by 2033. Global players like Rosatom and EDF have shown interest in collaborating.

Committees are currently working on finalising the legislative amendments. A roadmap for achieving 100 GW nuclear capacity by 2047 is also being prepared, which will guide deployment of various nuclear technologies in India’s energy transition strategy.