A Nuclear Pivot

India’s pivot to small modular reactors marks a quiet revolution in its nuclear policy, with deep geopolitical and strategic implications.

For decades, India’s nuclear energy policy has been defined by caution, self-reliance and stringent regulatory frameworks. That may be about to change following Prime Minister Narendra Modi’s recent visit to France, when the two countries announced a new collaboration to develop small modular nuclear reactors (SMRs). This marks a striking departure from the country’s historically ambivalent approach to international nuclear cooperation. This initiative, coupled with India’s decision to amend its strict nuclear liability law, suggests that Modi’s government is prepared to shake up the sector.

The timing was significant as it came before Modi was due to discuss nuclear investments with American firms during his ongoing Washington trip. This suggests a deliberate recalibration of India’s energy strategy that could potentially redefine its role in the global nuclear order.

For decades, India’s nuclear ambitions have been tempered by its rigid liability laws, a legacy of the tragic 1984 Bhopal gas leak, which left thousands dead and exposed the dangers of weak corporate accountability. Unlike other major nuclear nations, India has insisted on holding operators financially responsible for accidents, a stipulation that has deterred private investment and stalled projects like the massive, long-planned nuclear plant in Maharashtra. The recent push for small modular reactors (SMRs) represents a way to expand nuclear capacity without wading into the logistical and legal quagmire of traditional plants.

SMRs, unlike their full-scale counterparts, are compact, scalable and far easier to install. Built in factories and transported to their final destinations, they bypass the need for vast tracts of land and heavy infrastructure that has plagued India’s previous nuclear projects. By emphasizing modular reactors, India is not only accelerating its nuclear expansion but also signalling a willingness to integrate private sector players and foreign expertise into a domain long dominated by the state-run Nuclear Power Corporation of India Limited (NPCIL).

Finance Minister Nirmala Sitharaman recently set an ambitious target of 100 gigawatts of nuclear power by 2047. Given that India’s current capacity is a fraction of that, meeting such a goal requires a drastic policy rethink. The government has pledged over $2 billion for nuclear research and development, with a particular focus on building five indigenous reactors by 2033. The India-France agreement, which envisions joint design, development and production of SMRs, dovetails with this broader strategy.

For France, the deal is equally significant. The country has long been a champion of nuclear power, relying on it for nearly 70 percent of its electricity. Yet, its nuclear sector has faced setbacks in recent years, including cost overruns and safety concerns. By partnering with India, France is positioning itself as a leader in the next generation of nuclear technology. The collaboration also offers the diplomatic advantage at a time when Paris seeks to establish itself as a key player in Indo-Pacific geopolitics, countering both American and Chinese influence in the region.

Of course, this shift does not come without challenges. India’s nuclear liability law remains a sticking point, and while Modi’s government has hinted at reforms, it remains unclear how far these will go in assuaging foreign concerns. The memories of Fukushima linger in global nuclear discourse, raising questions about the safety of even smaller reactors. Then there is the question of public perception. Nuclear power remains politically sensitive in India, with environmental activists and local communities often resisting new projects.

Yet, if successful, this pivot to SMRs could be transformative. At a time when India is desperate to curb its reliance on coal and meet its carbon neutrality targets, nuclear energy offers a rare combination of reliability and low emissions. The geopolitical ramifications are equally profound: deeper cooperation with France strengthens India’s position as a global nuclear player, while the Washington talks could cement its role as a strategic energy partner to the West.

In many ways, India’s nuclear story is coming full circle. Decades ago, its nuclear program was shaped by suspicion. Ostracized from the global nuclear order after its 1974 test, it had to rely on self-sufficiency and tight regulation. Now, in a world increasingly defined by energy security and technological partnerships, India is emerging not as an isolated player, but as a collaborative force.