PM Modi, Trump Accelerate Nuclear Collaboration to Boost Atomic Reactors in India

Since the historic 2008 India-US Civilian Nuclear Deal, progress on nuclear cooperation has been slow, with no new American nuclear reactors making their way to Indian soil. However, in a renewed effort to bolster energy security, Prime Minister Narendra Modi and US President Donald Trump have expressed their commitment to advancing nuclear energy collaboration. After their recent talks at the White House, they reiterated their joint dedication to facilitating the construction of US-designed nuclear reactors in India, with an emphasis on large-scale localization and potential technology transfer.

Despite the 2008 agreement, nuclear negotiations have stagnated, with no substantial progress on deploying American reactors in India in the 21st century. In an effort to break the deadlock, Modi and Trump have now expressed interest not only in building large reactors but also in exploring the potential for advanced small modular reactors (SMRs) in India.

A Stumbling Block: India’s Liability Regime

A significant hurdle has been India’s people-friendly nuclear liability regime, which has proven challenging for American nuclear suppliers. Unlike other global nuclear damage liability frameworks, India’s regime has been viewed as less favorable to commercial entities.

In their joint statement, the leaders welcomed the Indian government’s Budget 2025 announcement to amend the Atomic Energy Act and the Civil Liability for Nuclear Damage Act (CLNDA). This move aims to address issues related to civil liability and support collaboration between the Indian and US industries in nuclear reactor production and deployment.

Interestingly, in 2010, while the National Democratic Alliance (NDA) was in opposition, discussions took place regarding the possibility of building six 1,000-MW nuclear reactors at Kovvada in Andhra Pradesh, a project that involved the Indian government and Westinghouse.

Small Modular Reactors Gaining Traction

In addition to large reactors, the growing interest in small and modular nuclear reactors has taken center stage. In his meeting with US National Security Advisor Michael Waltz, PM Modi emphasized the importance of industrial cooperation and civil nuclear energy, particularly regarding the development of SMRs.

Both Modi and Trump noted that future civil nuclear collaboration would not only involve large US-designed reactors but also open doors for cooperation in developing, deploying, and scaling up SMRs. This new direction is seen as key to enhancing nuclear power generation in India.

A Renewed Push for Progress

Wrapping up PM Modi’s US visit, Foreign Secretary Vikram Misri shared that both nations have agreed to push forward with civil nuclear energy collaboration, including building US-designed reactors in India. This initiative will involve large-scale localization and technology transfer, with continued focus on SMRs.

“Obstacles related to legal provisions in India that have previously hindered such cooperation are being addressed,” said Misri. He also noted the significance of recent budget announcements in advancing this collaboration, signaling progress in resolving these issues.

The budget’s announcement of a ‘Nuclear Energy Mission for Viksit Bharat’ aligns with India’s long-term goal of generating at least 100 GW of nuclear energy by 2047. Finance Minister Nirmala Sitharaman highlighted the importance of this mission for the nation’s energy transition and emphasized the need for private sector participation.

India’s Capability and Ambitions

India possesses end-to-end capabilities in nuclear technology, ranging from uranium mining to reactor construction and nuclear fuel reprocessing. However, a shortage of uranium resources remains a challenge. Despite this, nuclear energy is seen as a sustainable, low-carbon power source capable of supporting base load energy needs—a critical factor in addressing climate change.

In her speech, Sitharaman also outlined plans to set up a ‘Nuclear Energy Mission’ to promote research and development of SMRs, with an allocation of Rs 20,000 crore. The aim is to have at least five indigenously developed SMRs operational by 2033.

Dr. AK Mohanty, Chairman of the Atomic Energy Commission, expressed confidence that India could achieve 100 GW of nuclear power by 2047, citing the country’s technical capabilities. However, challenges related to securing land and uranium resources remain. He also highlighted the role of the private sector in helping to augment capacity, especially through small modular reactors.

Currently, India has installed 8,180 MW of nuclear power, with 24 reactors in operation, including 20 Pressurized Heavy Water Reactors (PHWRs) and four Light Water Reactors (LWRs). Given India’s growing energy consumption, nuclear power has become an increasingly attractive option for sustainable, low-carbon energy generation.

A Potential Breakthrough with US Suppliers

While the Indian government’s nuclear liability regime once posed significant challenges, the recent rapprochement between Modi and Trump may finally create an opportunity for American suppliers to enter the Indian market. Westinghouse Electric Company, for instance, has been negotiating to sell AP 1000 nuclear reactors to India, with a Greenfield site already identified for building these large, passively cooled reactors.

Meanwhile, Russia continues to work on additional reactors at Kudankulam, Tamil Nadu, progressing even after India implemented its new nuclear liability regime.

This growing partnership between India and the US could pave the way for greater nuclear energy cooperation, helping India meet its ambitious energy goals in a sustainable and secure manner.

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