India moves closer to opening nuclear power sector to foreign investment.

The Atomic Energy Commission has approved a foreign direct investment policy for India’s nuclear power sector, with the proposal now heading into inter-ministerial consultations. The development marks an initial but significant step towards allowing overseas participation in a sector that has traditionally been under strict state control.

Policy background and reform context

India’s nuclear power sector has traditionally been tightly controlled by the state, with limited scope for private or foreign participation. Recent legislative developments, including the recently enacted Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) framework, are intended to change this position by enabling both domestic and international investment and ending decades of exclusive government control over the sector. Seema S Jain from the Department of Atomic Energy confirmed the development at a workshop in New Delhi, describing it as part of a broader push to mobilise large-scale financing for nuclear expansion.

The reform agenda is driven by ambitious national targets. India aims to expand its nuclear power capacity to 100 gigawatts by 2047, a substantial increase from current levels. Achieving this will require an estimated INR 20 lakh crore in investment, highlighting the scale of capital needed and the rationale for opening the sector to foreign participation.

In parallel, policymakers are considering adjustments to liability frameworks and regulatory processes to address long-standing investor concerns and improve project viability.

What this signals for international businesses

For international businesses, this development points to two significant shifts in India’s investment environment.

The first is an increased openness to global capital and technology. India’s nuclear sector has long been one of the most restricted in the country. The AEC’s approval of an FDI policy marks a clear change in direction, with the government actively seeking foreign expertise and financing to support its energy ambitions.

The second is the scale of opportunity for companies in infrastructure, energy and engineering. India is targeting a significant expansion of its nuclear capacity in the coming decades and achieving that will require substantial private and international involvement across the value chain.

What to watch next

For international businesses tracking India’s evolving investment environment, this is a development worth following closely. The inter-ministerial consultation process will define the specific terms under which foreign capital can participate, and formal notifications will confirm when the policy takes legal effect.

Companies operating in infrastructure, energy and engineering should begin assessing where this opening could create opportunities, both as investors and as technology or services partners in India’s nuclear expansion.