India's Nuclear Energy Push Requires Innovative Financing
India will need innovative financing mechanisms, including green bonds, blended finance, and export credit support, to build a resilient nuclear energy ecosystem and meet its long-term clean energy targets, according to a joint report by KPMG and the US-India Business Council (USIBC). The report highlights that India stands at a strategic inflection point in nuclear energy development and could become a global leader with the right policy reforms, technological innovation, and investment mobilization.
Key Financing Tools to Reduce Investment Risks
The report advocates for harmonization of safety standards, joint research and development, and innovative financing tools such as green bonds, blended finance, and export credit support. These instruments can help reduce investment risks, attract institutional capital, and align nuclear projects with global sustainability objectives. The report also stresses the importance of public engagement and transparent communication to build societal trust, particularly regarding nuclear waste management and environmental safety.
Workforce Development and STEM Education Crucial
A key challenge is the need for a skilled workforce to support India's long-term nuclear expansion. The report states, "The importance of a skilled workforce cannot be understated," and calls for a framework to train personnel capable of safely constructing and managing the targeted 100 GW nuclear power capacity by 2047. To achieve this, it recommends greater emphasis on Science, Technology, Engineering, and Mathematics (STEM) education in premier universities and cross-country collaborations to accelerate skill development.
Policy Reforms: The SHANTI Act and Beyond
India has recently initiated significant policy reforms. The SHANTI Act, passed in December 2025, opens the nuclear sector to private participation, subject to regulatory and licensing requirements. It repealed the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act of 2010, which had restricted private and foreign investment. The report notes that further legal and regulatory reforms are necessary to unlock nuclear energy's full potential and that a coordinated policy push combining legal reform, regulatory agility, financial innovation, and international collaboration is essential.
