At the heart of this renewed momentum is India’s new nuclear legislation, the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Act, widely known as the SHANTI Act. The law has significantly altered the regulatory framework governing foreign participation in India’s nuclear sector and is being viewed as a decisive turning point for international investors.
The legislation consolidates earlier statutes and, most importantly, reforms the long-disputed liability provisions that had discouraged Western suppliers for more than a decade. It also opens the possibility for Indian private sector companies to own and operate nuclear power plants, a major shift in India’s traditionally state-dominated atomic energy landscape.
For years, the Civil Liability for Nuclear Damage Act of 2010 was regarded as the principal obstacle to foreign investment because suppliers feared prolonged legal exposure and uncertain financial risks. The SHANTI Act substantially softens that liability regime by aligning India’s framework more closely with international norms while simultaneously permitting greater private and foreign participation.
Maria Korsnick, President and Chief Executive Officer of the Washington-based Nuclear Energy Institute, said the new framework has fundamentally changed investor sentiment.
She said the improvements were substantial and noted that if American nuclear suppliers were dissatisfied with the SHANTI Act, they would not have sent a trade mission to New Delhi. According to her, the very presence of the delegation demonstrates a strong willingness to conduct business and build partnerships with India.
Korsnick described the legislation as opening the door to a new phase in India-United States relations. However, she cautioned that the ultimate test will lie in the regulations that implement the law.
She said the rules governing the SHANTI Act are still under development and that the United States nuclear industry wants an opportunity to provide comments and help shape regulations that are favourable to the industry.
This request for participation in the rule-making process underscores a broader concern. Although the legislative framework now appears more aligned with global standards, investors remain cautious about regulatory uncertainty in a sector that demands massive capital investments and involves significant operational risks.
Dan Lipman, President of Global Business Initiatives at Westinghouse Electric Company, expressed guarded optimism. He said India’s amended liability framework is sufficient to enable business and added that remaining gaps could be addressed through contractual arrangements.
Westinghouse Electric Company has long sought to supply its AP1000 reactors for the proposed Kovvada nuclear power project in Andhra Pradesh, but commercial negotiations with the Nuclear Power Corporation of India Limited have remained stalled for several years.
India currently has approximately 8 gigawatts of installed nuclear power capacity. Its goal of reaching 100 gigawatts by 2047 represents one of the world’s most ambitious nuclear expansion programmes and forms a critical part of New Delhi’s strategy to secure reliable low-carbon electricity for a rapidly growing economy.
Union Minister of State for Science and Technology Dr. Jitendra Singh said the India-United States partnership in clean energy and advanced technology is entering a new era.
He stated that the two countries share a strong and future-oriented partnership in science, technology, clean energy and emerging sectors, with civil nuclear cooperation gaining increasing strategic and economic significance.
The minister said the TRUST initiative, launched during Prime Minister Narendra Modi’s meeting with President Donald Trump in February 2025, has established a stronger framework for cooperation in critical technologies and resilient supply chains.
Yet historical mistrust continues to influence strategic thinking. India’s first nuclear power station at Tarapur Atomic Power Station was built with American technology in 1969. Following India’s 1974 nuclear test, disruptions in fuel supplies created a deep trust deficit that still shapes India’s approach to long-term energy security.
When asked whether the United States could provide lifetime fuel supply guarantees, Korsnick offered a cautious response. She said the commercial sector can offer long-term fuel contracts but stopped short of promising sovereign-level assurances.
Her remarks indicate that while extended commercial agreements are possible, the kind of permanent state-backed guarantees India may seek after the Tarapur experience remain beyond the authority of private companies.
Economics presents another formidable challenge. India has spent decades developing a domestic nuclear ecosystem centred on Pressurised Heavy Water Reactors. Its latest 700-megawatt units are manufactured entirely within the country, giving India substantial control over costs and supply chains.
Industry estimates place construction costs at approximately Rs 20 crore per megawatt, creating a demanding benchmark for foreign suppliers.
Korsnick acknowledged that cost, construction timelines and operational reliability will ultimately determine commercial success. She said the current period is marked by extraordinary innovation and that the true costs, timelines and reliability of new technologies will become clear only as projects are built.
Her remarks highlight the challenge facing American companies, many of whose advanced reactor and small modular reactor designs remain in the early stages of deployment, as they seek to compete with India’s proven and lower-cost indigenous technology.
Rather than simply selling equipment, American companies are now proposing broader industrial partnerships.
Korsnick said the United States wants to localise manufacturing and work with India as a strategic partner, enabling Indian industry to become part of the global nuclear supply chain rather than merely hosting imported reactors.
This approach aligns with India’s “Make in India, Make for the World” strategy, which seeks to leverage domestic manufacturing capabilities for both national deployment and international exports.
India’s nuclear supply chain, developed over decades around Pressurised Heavy Water Reactor technology, is already highly mature. Integrating this industrial base with American light water reactor technology could significantly reduce costs and improve the feasibility of achieving the 100-gigawatt target.
The global nuclear industry is also moving beyond conventional large reactors toward small modular reactors, factory-built units designed to reduce construction times, lower upfront costs and provide greater flexibility. However, no land-based civilian small modular reactor is yet operating in any Western country. Naval reactors used in submarines serve fundamentally different strategic purposes and cannot be directly compared with civilian power plants.
Korsnick said India will likely require a diverse mix of technologies. She noted that while traditional large reactors remain essential for rapid capacity expansion, small modular reactors and micro-reactors could serve specialised applications such as industrial heat generation and powering data centres.
She also warned that India should not delay decisions, noting that countries around the world are already competing to secure access to emerging nuclear technologies.
Despite the technological promise, cost competitiveness remains central to India’s strategy. New Delhi has made it clear that nuclear electricity must compete with thermal power at the point of generation. Given the high capital costs associated with many Western reactor designs, meeting that benchmark will be challenging.
Korsnick nevertheless argued that nuclear power should be assessed over its full operational life. She said nuclear reactors can operate for 100 years or more, making them highly competitive when evaluated over the long term.
She was unequivocal about nuclear energy’s role in combating climate change, stating that global decarbonisation goals cannot be achieved without it.
For a fast-growing economy such as India, where electricity demand is rising sharply and net-zero ambitions are becoming increasingly important, nuclear power offers a dependable and low-carbon alternative to fossil fuels.
The message from the United States nuclear industry is clear: India has once again emerged as one of the world’s most attractive atomic energy markets. But the success of this renewed partnership will depend not on political declarations alone, but on effective implementation of the SHANTI Act, competitive pricing, credible fuel supply assurances and the rebuilding of long-term strategic trust. Analysts believe Washington must still do far more to ensure that the Indo-United States civil nuclear partnership becomes a genuine win-win arrangement, while respecting India’s enduring commitment to energy independence.
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