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India budget aims to scale up civil nuclear power and develop local renewables supply chains
12/2/2025
News
The Indian government has announced new initiatives to strengthen climate resilience and the energy transition in its Union Budget 2025, including plans to expand nuclear generation capacity by 11 times that of today by 2047, as well as domestic manufacturing of key renewable energy components like solar PV cells, batteries and wind turbines.
India’s Finance Minister Nirmala Sitharaman has announced plans to expand India’s nuclear capacity to 100 GW by 2047, building on the announcement she made in her July 2024 budget speech. Further, she announced a Nuclear Energy Mission for research and development of small, modular reactors (SMRs), and said that at least five indigenously developed SMRs will become operational by 2033.
The mission is part of India’s broader efforts to achieve sustainable energy goals and reach the target of 500 GW non-fossil fuel capacity by 2030. Currently, India’s installed nuclear capacity stands at 8.2 GW, contributing around 2.6% to overall electricity generation in 2024.
According to analysis by Ember, the 100 GW nuclear target will require significant legislative reforms, particularly to enable private sector participation through amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act.
Ruchita Shah, Asia Energy Analyst for India, Ember, notes: ‘The journey from 8.2 GW today to 100 GW in 22 years will require a series of interventions. While this is a positive step, a renewed push is needed in the short-term to meet the existing solar, wind and energy storage targets by 2032; for that, significant steps are expected throughout the year.’
The 2025 Union Budget also recognised micro, small and medium enterprises as key drivers of India’s development journey. A National Manufacturing Mission was announced to boost domestic production of solar PV cells, wind turbines, batteries and electrolysers.
Meanwhile, the Budget’s basic custom duties’ exemptions of cobalt powder, lithium-ion battery scrap, and other critical minerals aims to strengthen India’s recycling industry. By eliminating duties on key scrap materials, the government intends to lower costs for domestic secondary producers and encourage investments in critical mineral recycling.
Duttatreya Das, Asia Energy Analyst for India, Ember, notes: ‘Building on previous years’ progress, the announcement of the National Manufacturing Mission is a positive step toward achieving self-reliance in the clean energy transition in the long run. The reduction in basic customs duty on various waste and scrap of critical minerals, including lithium-ion batteries, is a welcome move that can strengthen the critical mineral availability for the domestic production of key components such as solar PV cells, batteries and wind turbines.’
The analysis from Ember points out that the Budget did not explicitly mention support for wind energy, transmission infrastructure and energy storage, green hydrogen and industrial decarbonisation.
