Budget 2025: India's Nuclear Energy Move Is About Clean-Energy Security

India's Union Budget announcement heralds a decisive commitment to energy self-reliance and the promotion of clean energy solutions. The government's ambitious target to develop at least 100 gigawatts (GW) of nuclear energy by 2047 encapsulates the nation's dedication to a sustainable and self-sufficient energy future.Central to this vision is the establishment of a Nuclear Energy Mission, with an impressive allocation of Rs 20,000 crore earmarked for the research and development of small modular reactors. The goal of operationalising at least five indigenously developed SMRs by 2033 is poised to significantly elevate India's nuclear energy capacity, positioning the country as a formidable player in the global clean energy landscape.However, the legislative reforms required to facilitate this expansion have been long overdue. The Atomic Energy Act and the Civil Liability for Nuclear Damage Act have historically impeded the participation of private enterprises and foreign technology suppliers in India’s nuclear energy sector. Under the existing legal framework, both plant operators and equipment suppliers are held liable for damages in the event of an incident, a provision that has deterred potential international collaborators. By amending these statutes, the government seeks to create a more inclusive and robust nuclear energy ecosystem, fostering greater public-private partnerships and accelerating the nation’s energy transition..India's ambition to achieve 500 GW of clean power is intrinsically linked to the growth of nuclear energy. At present, nuclear power constitutes a mere 3% of India's total electricity consumption, a stark contrast to global benchmarks, where countries like France generate over half of their energy from nuclear sources. In order to meet its ambitious clean energy targets, India must strive to increase its nuclear energy share to at least 15–20% within the next decade. This strategic shift is not only vital for securing energy independence but also for mitigating the adverse effects of climate change. As the world grapples with the escalating threat of global warming, India's need to diversify its energy sources and reduce its carbon footprint has never been more pressing.Nuclear energy, with its negligible emissions, represents a crucial component in the decarbonisation of India's power sector. As power generation is responsible for approximately 30% of global carbon emissions, transitioning to nuclear power will substantially lower India's carbon intensity and accelerate its transition towards net-zero emissions. By scaling up nuclear capacity, India can demonstrate global leadership in the fight against climate change, showcasing a model of sustainable development that balances economic growth with environmental stewardship.The environmental benefits of nuclear energy are irrefutable. A single nuclear plant has the potential to power approximately 700,000 homes while emitting significantly less carbon dioxide than even a hybrid car. This stark contrast shows the role that nuclear energy can play in reducing India's carbon footprint, which currently accounts for 7% of the global total. Furthermore, when integrated with renewable energy sources like solar and wind, nuclear energy forms an essential pillar of India's decarbonised energy system, offering both base-load and flexible generation capabilities.Energy resilience and the pursuit of net-zero goals are the two vital facets that the nuclear energy mission can significantly contribute to. By incorporating nuclear power into its energy mix, India can fortify its energy security, reducing its vulnerability to external shocks such as fluctuations in global fuel prices or supply disruptions. Given that power generation is a major contributor to India's carbon footprint, nuclear energy provides a reliable, clean and cost-effective solution for ensuring a steady, uninterrupted power supply while mitigating the nation's dependency on fossil fuels. This becomes particularly critical as India strives to meet its growing energy demands for an expanding population, while simultaneously addressing the pressing challenges of climate change.India's nuclear energy ambitions also align with its broader geopolitical objectives. By expanding domestic nuclear capabilities, India can reduce its dependence on imported fossil fuels, gaining greater control over its energy security. As nations worldwide strive to meet their carbon-neutral targets, India's growing nuclear energy capacity will enhance its strategic standing in global energy diplomacy, fostering international collaborations and ensuring its voice is heard in shaping the future of global energy governance.Moreover, the growth of nuclear power represents an opportunity to stimulate technological innovation and job creation within India's energy sector. The development of small modular reactors, in particular, promises to unlock new markets for homegrown technologies, which would serve as a boon for India's manufacturing sector. The potential for creating high-tech jobs and fostering cutting-edge research further augments the economic benefits of expanding nuclear energy. At the same time, addressing environmental concerns related to nuclear energy through stringent safety standards and transparent regulations will be crucial for securing public trust. It is essential that India not only builds its nuclear infrastructure but also ensures the safety and transparency of its operations, so that the long-term benefits of nuclear energy are realised responsibly and sustainably.Lastly, India's significant energy import bill presents a considerable economic burden. With crude oil and coal imports comprising a large portion of this expenditure, reducing reliance on foreign energy sources has become a pressing need. Nuclear power offers a promising pathway to diminish this dependence by providing an indigenous, domestic source of energy. Each additional nuclear plant reduces India's reliance on imported oil and gas, thereby conserving valuable foreign exchange and contributing to the broader goal of reducing the nation’s import bill. Furthermore, the ability to generate clean power from domestic sources of energy will free up resources for investment in other critical areas of economic development, while insulating India from the price volatility inherent in global energy markets. As India progresses towards its net-zero emissions target by 2070, nuclear energy will remain an indispensable part of the strategy to decarbonise the power sector..Srinath Sridharan is a corporate adviser and independent director on corporate boards.Disclaimer: The views expressed here are those of the author and do not necessarily represent the views of NDTV Profit or its editorial team. .Budget 2025 Highlights: Middle Class’ Tax Win To Consumption Second Wind, Key Takeaways From FM Speech

Budget 2025: India's Nuclear Energy Move Is About Clean-Energy Security

India's ambition to achieve 500 GW of clean power is intrinsically linked to the growth of nuclear energy.

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