India’s nuclear power sector, long cloaked in strategic caution and state monopoly, appears ready for a historic leap. The government’s consideration of allowing up to 49 per cent foreign direct investment in nuclear power plants marks not just a policy shift ~ it signals a deep rethink of how India wants to meet its energy future.

The timing is not incidental. Paired with the proposed easing of liability laws and the long-overdue entry of Indian private players, this new FDI window could transform the nuclear landscape from an insular, slowmoving domain into a vibrant arena of investment and innovation. For a country targeting 100 gigawatts of nuclear capacity by 2047 ~ up from just over 8 GW today ~ such bold reforms are essential. Nuclear energy is India’s best bet for reliable, round-the-clock clean power, especially as it seeks to phase down coal without stalling growth. Solar and wind are indispensable, but they are also intermittent. Nuclear fills that base-load gap with zero emissions ~ provided it is safe, economically viable, and publicly accepted. The inclusion of foreign investors can help on three fronts.

Advertisement

The first is capital as building nuclear plants is notoriously expensive, and India needs more than just domestic public funds. Second is technology as global players bring cutting-edge designs, safety systems, and operational expertise. The third is credibility because foreign participation may boost investor confidence and fast-track capacity expansion. Opening the nuclear sector also presents an opportunity to build a robust supply chain ecosystem within India. If executed strategically, this could catalyse the growth of domestic component manufacturing, skilled workforce training, and R&D partnerships ~ benefits that go far beyond individual projects and align with broader goals of self-reliance and industrial competitiveness.

But this opportunity is laced with complex responsibilities. India must ensure that the opening up of the sector does not weaken sovereign control over critical safety and regulatory standards. A 49 per cent cap with prior approval requirements is a good start ~ preserving national oversight while inviting collaboration. For global investors, clarity on exit options, repatriation of profits, and dispute resolution mechanisms will also be key. India must craft investor-friendly rules without diluting its regulatory authority. If done right, the nuclear sector could become a model for foreign participation in other strategically sensitive sectors still largely off-limits. It is also time for the public narrative around nuclear energy to evolve.

Decades of secrecy and state dominance have made nuclear power opaque and politically sensitive. As more private and foreign stakeholders enter, transparency, community engagement, and environmental accountability must improve. Trust is as critical to nuclear expansion as funding or technology. If India manages to execute this shift with caution and clarity, it will not just boost clean power ~ it will redefine the country’s energy diplomacy, technological ambition, and economic resilience. The atom may have once symbolised power. In India’s next chapter, it could well symbolise partnership.