Budget 2026: Analysts Anticipate Major Policy Push for Nuclear Energy to Accelerate India's Clean Power Transition
As India prepares for the Union Budget 2026, financial analysts and brokerage firms are predicting significant supportive measures for the renewable energy sector, with particular emphasis on nuclear power. This expectation aligns with the government's sustained focus on clean energy initiatives over recent years, positioning nuclear energy as a crucial component in the nation's energy security and climate action strategy.
India's Ambitious Clean Energy Targets and Nuclear's Role
India has established formidable clean energy objectives that require substantial expansion across all non-fossil fuel sources. The country aims to install 500 gigawatts of non-fossil fuel capacity by 2030, achieve net-zero emissions by 2070, and meet 50% of its electricity requirements from renewable energy sources by 2030. Despite these ambitious goals, nuclear power generation currently remains relatively low compared to other renewable sources like solar and wind.
To address this gap and ensure a balanced energy mix, India has initiated steps to significantly increase nuclear power capacity. The nation has set a target to expand nuclear power capacity to 100 gigawatts by 2047, with intermediate goals including increasing capacity toward 22–23 gigawatts by approximately 2031–32. Nuclear power offers distinct advantages as a clean, environmentally friendly source of base-load electricity that operates continuously, providing stable power supply regardless of weather conditions or time of day.
Brokerage Expectations for Budget 2026 Nuclear Measures
Domestic brokerage firm Nuvama Institutional Equities expects the Government of India to announce supportive policy measures that would place nuclear power on equal footing with other renewable energy sources. These anticipated measures may include granting nuclear projects access to green financing mechanisms and removing the sector from the Central Pollution Control Board's 'red' category, which currently designates it as high environmental risk.
With nuclear power opening to private players through the proposed SHANTI Bill, Nuvama expects additional measures such as GST rationalization for ongoing and upcoming nuclear projects, inclusion in the national green taxonomy framework, and formal removal from CPCB's restrictive categorization. The brokerage identifies engineering and power companies including Larsen & Toubro, Bharat Heavy Electricals Limited, and NTPC as likely key beneficiaries of these policy changes.
Additional Analyst Perspectives and Incentive Expectations
Anand Rathi Research has indicated that a Production Linked Incentive scheme specifically for the nuclear sector, estimated at ₹180–200 billion, is under serious consideration. This PLI scheme is expected to focus on critical nuclear components including heavy forgings, pressure vessels, and specialized steel alloys. The proposed SHANTI Act is anticipated to further open the sector to private participation, creating new opportunities for domestic manufacturing and technological advancement.
Bajaj Broking echoes similar views, suggesting that the government's renewable energy push—particularly in wind, solar, and battery energy storage systems—along with continued spending on power infrastructure, could be accompanied by policies allowing greater private participation in nuclear projects and improved funding mechanisms for energy storage technologies.
According to Motilal Oswal, traditional focus areas including defence, nuclear, electronics, and power are likely to continue receiving strong budgetary support as part of the government's structural reform agenda, indicating sustained commitment to these strategic sectors.
India's Nuclear Heritage and Current Capacity
India possesses a distinguished history in nuclear energy development, being among the pioneering nations in adopting this technology. In 1948, just one year after gaining independence, the country enacted its first Atomic Energy Act and embarked on nuclear power development. Initially introducing small reactors manufactured by General Electric, India eventually became the first Asian nation to operate nuclear power plants in 1969.
The Nuclear Power Corporation of India Limited serves as India's state-owned nuclear power company, responsible for generating electricity through nuclear energy. According to NPCIL's official data, the corporation currently operates 24 commercial nuclear reactors with a combined installed capacity of 8,780 megawatts. This existing infrastructure provides a foundation for the planned expansion toward the 100 gigawatt target by 2047.
Disclaimer: Investors are advised to consult with certified financial experts before making any investment decisions related to the nuclear or renewable energy sectors.
