US Signals Deeper India Ties on Innovation, R&D After Nuclear Sector Opens to Private, Foreign Players

The United States has signalled interest in strengthening cooperation with India on innovation and research and development following the government’s move to open up the nuclear sector.

Washington welcomed the passage of the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, saying it would pave the way for stronger civil nuclear cooperation between the two countries.

Indian President Droupadi Murmu signed the SHANTI Bill into law on Monday. In a post on X, the US Embassy in India said: “We welcome India’s new SHANTI Bill, a step towards a stronger energy security partnership and peaceful civil nuclear cooperation.” It added that “the United States stands ready to undertake joint innovation and R&D in the energy sector.”

SHANTI Act Replaces Atomic Energy Act of 1962

The enactment of the SHANTI Act repeals the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act, 2010, subsuming all legislation governing the civil nuclear sector under a single framework.

The sector, which was previously fully state-run, is now open to private and foreign participation. Private sector entry is one of the most significant features of the new law, though activities will remain subject to strict regulatory oversight by the Atomic Energy Regulatory Board.

The legislation comes nearly nine months after Union Finance Minister Nirmala Sitharaman announced plans to open up the nuclear sector in her Budget speech for FY26.

Under the SHANTI Act, entities will be allowed to participate across fuel cycle activities, equipment manufacturing, power generation and nuclear power plant operations. The law also permits up to 49% foreign direct investment in select segments of the nuclear sector.

The opening up of the sector to private and foreign capital is expected to attract investment and accelerate research and development. The government expects advances in technology through joint innovation and research to support India’s goal of achieving 100 gigawatts of nuclear power capacity by 2047, coinciding with the centenary of Independence.

India’s installed nuclear capacity currently stands at 8.78 GW and is projected to rise to 22 GW by 2031–32. The SHANTI Act aligns with the broader ‘Viksit Bharat’ vision of transforming India into a developed economy by 2047.