Finance Minister Nirmala Sitharaman, in the Union Budget for FY26, announced a major shift towards nuclear energy, proposing the development of 100 GW of nuclear power capacity by 2047.

A key initiative is the promotion of small modular reactors (SMRs) to enhance energy security as part of the government’s broader focus on non-fossil fuel energy expansion. To support this transition, amendments to the Atomic Energy Act and Civil Liability for Nuclear Damage Act will be introduced, enabling private sector participation.

A Rs 20,000 crore Nuclear Energy Mission will be launched for research and development (R&D) of SMRs, with at least five indigenous SMRs operational by 2033. This move reflects India's long-term commitment to reducing dependence on fossil fuels and achieving its Net Zero emissions target by 2070.

The government also plans to add 80 GW of thermal capacity by 2032 to meet short-term electricity demands. Additionally, domestic manufacturing of grid-scale storage, wind turbines, solar modules, and EV batteries will be promoted through government incentives to strengthen India’s clean energy ecosystem.