Union Budget 2025-26 has given a significant push toward nuclear energy as part of India’s long-term energy transition strategy. The Government of India has set an ambitious target of 100 GW nuclear power capacity by 2047, reinforcing its commitment to energy security and sustainability. A crucial step in this direction is the Bharat Small Modular Reactors ( BSMRs) – a compact 220 MW pressurized heavy water reactor based on India’s reactor technology – which will be developed by private sector participation. This development aligns with the broader objective of Viksit Bharat, ensuring energy reliability and reducing dependency on fossil fuels.
Recognizing the importance of nuclear energy, On February 12, 2025, India and France agreed to jointly develop modern nuclear reactors, emphasizing that nuclear power is critical for energy security and transitioning to a low-carbon economy. Two countries signed the “Letter of Intent” on Small Modular Reactor (SMRs) and Advanced Modular Reactors (AMRs), confirmed by a joint statement issued after Indian Prime Minister Narendra Modi and his counterpart President Emmanuel Macron met in Paris.
A joint statement highlighted the deep-rooted civil nuclear ties between India and France, reaffirming cooperation in the peaceful uses of nuclear energy. Both leaders stressed that nuclear energy is an essential part of the energy mix for strengthening energy security. The meeting also reviewed the progress of the Jaitapur Power Plant Project. This bilateral meeting also renewed a memorandum of understanding(MoU) between India’s Department of Atomic Energy(DAE) and France’s commissariat a “l’Énergie Atomique et aux Énergies Alternative” of France (CEA) to enhance cooperation with the Global Centre for Nuclear Energy Partnership (GCNEP), based in Haryana which aims to promote international collaboration in nuclear energy research and development and capacity building.
The Jaitapur project is envisioned as a six-unit EPR( European Pressurized Reactors) nuclear power plant in Maharashtra, India, with a total capacity of 9.6 GWe, making it the world’s most powerful nuclear facility. Once operational, it will produce around 75 TWh of electricity annually, meeting the energy needs of 70 million Indian households while preventing the release of approximately 80 million tons of CO2.
About SMRs and AMRs
Small modular reactors(SMRs) are advanced next-generation nuclear reactors that are smaller, safer, and more flexible than conventional reactors. With a capacity of up to 300 MW(e) per unit, they can be factory-manufactured and transported for on-site installation, enabling rapid deployment of clean energy. Advanced Modular Reactors( AMRs) represent the next phase of nuclear innovation, integrating enhanced safety features, and greater adaptability to various energy needs.
Civil Nuclear Cooperation
The history of atomic energy cooperation between the two countries goes back to the early Cold War period. The cooperation was only realized in January 1951 when the two countries signed their first bilateral agreement for research and development of ‘beryllium-moderated reactors’. Between 1966 and 1969, the two countries negotiated on breeder reactors- a plutonium-fueled, plutonium-breeding reactor technology, in which the French dominated. This agreement majorly impacted India’s nuclear programme, by allowing India to have a civil justification for the acquired reactors and technology.
After India’s first peaceful nuclear test in 1974, generated hostile reactions across the Western countries, France was the only Western country that congratulated India on achieving this “scientific feat”. The nuclear test in 1974 proved costly for India’s nuclear program as the US stopped supplying fuel reactors in the Tarapur Nuclear facility in Maharashtra, however, it was France, who replaced America as a fuel supplier to the Tarapur reactors.
In September 2008, a milestone was achieved in nuclear cooperation, after India received a Nuclear Suppliers Group (NSG) waiver for civil nuclear trade, France became the first country to sign a nuclear agreement. Later when NSG restricted enrichment and reprocessing technology for non-NPT signatories, France assured continued cooperation with India.
In 2010, India and France exchanged the instrument of ratification of the cooperation agreement, on the development of peaceful uses of nuclear energy signed in Paris on Sept. 30, 2008. The two countries intend to develop a multifaceted civil nuclear cooperation, covering a wide range of activities including nuclear power projects, fuel supply, research & development, nuclear safety, education and training.
India and France share a mutual commitment to peaceful nuclear energy which is evident in its Industrial Way Forward Agreement in 2018, on the Jaitapur Nuclear Power Plant Project (JNPP), in Maharashtra. In January 2025, a meeting of a special task force took place in the larger framework of the Indo-French Strategic Dialogue. Both sides agreed to work on establishing a partnership on low and medium-power modular reactors. Cooperation on JNPP and shared vision of developing small modular reactors and advanced modular reactors is considered to be instrumental in Indo-French relations in terms of energy security and environmental sustainability. Agreement on SMRs and AMRs would further advance the cooperative efforts on nuclear energy and deepen the ties between the two nations. India-France nuclear ties, rooted in middle power alignment, have persisted beyond the Cold War and continue to strengthen.
India’s Energy Data
India relies heavily on fossil fuels, particularly coal (55% of energy needs), which accounts for more than 88% of its primary energy needs. This dependence poses risks related to supply chain stability and environmental sustainability. As part of the transition to clean energy mission, India aims to generate 100 GW of nuclear energy by 2047. Recently the government of India announced a project to launch a Nuclear Energy Mission with a budget outlay of Rs 20000 crore for research and development of SMRs.
India plans to operationalize a minimum of five SMRs which are to be developed within the country. The government is considering amendments to the Atomic Energy Act of 1962, and the Nuclear Liability Act, of 2010 to enable private sector participation in the research and development of nuclear energy. Private players in tandem with the government of India will collaborate to set up Bharat Small Reactors, Research and Development of Bharat Small Modular Reactors, and Research and Development of newer technology for nuclear energy.
As of now, nuclear power plants contribute 1.6% of India’s total installed power capacity and approximately 3% of total electricity generation which helps save around 41 million tonnes of carbon dioxide emissions annually. India aims for a threefold increase in its installed nuclear capacity by 2031-32.
Reducing Dependence on Fossil Fuel
The Indian government has set an ambitious target to increase nuclear capacity, aiming at 20 GW by 2032 and 100 GW by 2047 and achieve 500 GW of non-fossil fuel capacity by 2030 as pledged at the COP26 summit in Glasgow in 2021. SMRs and AMRs would provide a reliable and scalable energy source to complement other renewables such as solar and wind.
The agreement would help address India’s energy demand. India’s energy demand is projected to grow rapidly, with the International Energy Agency estimating a doubling by 2040. India imports nearly 85% of its crude oil, and developing domestic nuclear power reduces its dependence on fossil fuels. Integrating SMRs and AMRs will diversify India’s energy mix, reducing reliance on fossil fuels and enhancing energy security.
Demonstrating India’s commitment to reducing greenhouse gas emissions and combating climate change. Successful implementation of projects like the Jaitapur Plant will significantly increase the share of clean energy in India’s portfolio, serving as a model for sustainable energy development worldwide. The agreement emphasizes ongoing efforts related to the Jaitapur nuclear power plant project in Maharashtra, which, upon completion, is expected to be the world’s largest nuclear power facility, significantly boosting India’s nuclear energy capacity and helping India’s target to achieve net zero emission by 2070.
One of the prominent challenges that India faces is pan-India electrification- challenges to accelerating access to energy is infrastructure – limited grid coverage in rural areas and the cost of grid connection for rural electrification. In areas lacking sufficient line transmission and grid capacity, SMRs can be installed into an existing grid or remotely off-grid, providing low-carbon power for industry and the population. Moreover, as compared to conventional plants – which require frequent refueling every 1 to 2 years, SMRs have reduced fuel requirements. Power plants based on SMRs may require less frequent refueling, every 3 to 7 years, making them more efficient and cost-effective.
Geopolitical Significance
India’s collaboration with France in developing modern nuclear reactors holds immense geopolitical significance, influencing India’s strategic autonomy and international standing. Historically, India’s nuclear collaboration has been predominantly with Russia, exemplified by projects like the Kudankulam Nuclear Power Plant. However, the recent agreement with France signifies the strategic shift towards diversifying India’s nuclear partnerships. This diversification reduces over-reliance on a single nation, thereby enhancing India’s strategic autonomy and resilience in the global nuclear paradigm.
China’s aggressive expansion in nuclear capabilities and nuclear technology exports- through road and belt initiative, and export reactors to Pakistan, pose a security threat to india. India’s partnership with France serves as the counterbalance, ensuring regional power equilibrium. This progress not only deters potential adversaries but also showcases India’s technological prowess, contributing to the balance of power in Asia.
By engaging with France- a nation recognized for its commitment to nuclear non-proliferation- India reinforces its dedication to peaceful nuclear development. This alignment enhances India’s global image as a responsible nuclear power, facilitating smoother integration of international nuclear commerce and regulatory framework.
The agreement strengthens India’s case for Nuclear Supplier Group(NSG) membership, which is currently blocked by China. By deepening ties with France – a leading NSG member- India gained greater diplomatic leverage to push for full membership, allowing it to expand nuclear trade and technology access.
Way forward
The India-France nuclear agreement marks a strategic breakthrough in India’s pursuit of energy security, sustainability and technological advancement. With France’s expertise in nuclear technology and India’s growing energy needs, this partnership is set to reshape India’s power sector by accelerating the deployment of small modular reactors and advanced modular reactors.
Agreement on cutting-edge technology such as SMRs and AMRs and renewed progression on the Jaitapur project between India and France will significantly reduce India’s dependence on coal and curb carbon emissions. With India’s energy demand projected to grow rapidly, nuclear power will play a critical role in diversifying its energy mix and achieving a net zero emissions target.
Furthermore, the agreement strengthens Indo-French diplomatic ties, enhances technological innovation and opens avenues for private-sector investment in India’s nuclear industry. However, the success of this initiative hinges on policy reforms, regulatory clarity, and timely project execution.
If implemented efficiently, this nuclear partnership has the potential to be a game changer, positioning India as a global leader and an inspiration for other developing countries in clean energy while ensuring stable, reliable, and long-term power supply for its growing population and economy.
[Photo by the Department of Atomic Energy, India, via Wikimedia Commons]
Sarafaraj Ahmed is currently based at MMAJ Academy of International Studies, Jamia Millia Islamia. He holds a postgraduate degree in Public Administration from Jamia Millia Islamia, New Delhi. The views and opinions expressed in this article are those of the author.
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