India, US To Jointly Design, Manufacture Nuclear Reactors In India

New Delhi: In a significant stride forward for the India-US civil nuclear deal, the US Department of Energy has given the green light for a US company to partner with Indian firms in the design and manufacture of nuclear reactors within India. This strategic move not only deepens the bilateral relationship but also marks a major triumph for New Delhi’s long-standing insistence on keeping the entire process in-house. The partnership will focus on producing Small Modular Reactors (SMRs), a technology crucial for meeting emerging energy needs efficiently.
At the heart of this development is the agreement to jointly design and build SMRs, a technology platform that promises to revolutionize affordable energy supply globally. This shift underscores India’s strategic advancement in nuclear power generation, moving beyond its traditional expertise in Pressurized Heavy Water Reactors (PHWRs) to the more universally adopted Pressurized Water Reactors (PWRs).
The approval granted to Holtec International on March 26, 2025, under the US Atomic Energy Act’s regulatory framework, paves the way for transferring SMR technology to key Indian partners, including Larsen & Toubro Limited, Tata Consulting Engineers Ltd, and Holtec Asia. This move is expected to not only bolster India’s nuclear capabilities but also significantly enhance the private sector’s role in designing and manufacturing advanced nuclear reactors.
A crucial condition in this agreement is that any jointly designed and manufactured nuclear plants cannot be transferred to third parties or other countries without explicit consent from the US government. This safeguard reflects the cautious approach taken by both nations to ensure responsible technology sharing.
This partnership occurs at a moment when both India and China are vying for leadership in the global nuclear technology landscape, particularly in SMRs. As China seeks to dominate the market with competitive pricing, India’s collaboration with the US positions it to offer robust alternatives to developing nations. The agreement also highlights a significant shift in favor of India’s private sector, allowing it to gain expertise in advanced nuclear technology.
The deal represents a massive diplomatic success for India, which had long insisted on domestic involvement in all stages of nuclear reactor development. It signals a new era of collaboration in high technology sectors, aligning with broader strategic objectives between the two countries. Additionally, it positions India as a key player in providing cost-effective, sustainable energy solutions across the Global South.