Nuclear power is quietly stepping into the spotlight as India looks for new ways to fuel its future. In June, the government approved Bihar’s first nuclear power plant, a milestone that highlights where the country is headed. This isn’t just another project; it’s part of a broader plan to cut pollution, meet rising electricity demand, and secure India’s place among the world’s clean energy leaders.
While solar and wind have dominated headlines, nuclear energy offers unique strengths. Unlike sources that rely on weather, nuclear plants deliver steady power 24/7 to homes, factories, and industries. That reliability makes nuclear a crucial part of India’s energy mix.
For investors, this shift is worth following closely. As more nuclear plants move forward, companies that build reactors, supply specialized equipment, and help run these facilities could see meaningful growth.
In this blog, we’ll explore India’s nuclear journey, recent developments, and the top nuclear power stocks set to benefit as the sector gains momentum.
India’s Nuclear Journey: From Ancient Traces to Global Standing
India’s connection with nuclear power is a story unlike any other; part science, part ambition, and a little bit of legend. Over the decades, the country has carved its own path, overcoming challenges and building one of the world’s most unique nuclear programs.
Nuclear Power Traces in Ancient India
Some say India’s fascination with nuclear-like power goes way back, woven into the fabric of its epics and mythology. Ancient texts like the Mahabharata and Ramayana describe weapons that sound uncannily similar to modern nuclear arms.
Take the Brahmastra from the Mahabharata, for example. It was said to be a single projectile “charged with all the power of the universe,” unleashing a blinding blaze “as bright as ten thousand suns.” When deployed, it scorched the land, wiped out entire armies, and caused hair and nails to fall off. Some interpret as eerily similar to radiation sickness.
Then there’s the Brahmashirsha Astra, considered an even more devastating version, believed to have the power to destroy the world and dry up oceans.
The Ramayana also mentions divine weapons like the Divyastras, said to create deafening booms, searing heat, and shockwaves that flattened everything in their path.
Whether these accounts are metaphorical or literal is still debated. But they add a powerful, almost mystical layer to India’s modern nuclear story.
India’s Early Nuclear Program: Key Milestones
India’s nuclear journey began soon after independence, driven by a vision to harness atomic energy for development and self-reliance. Here’s how it unfolded, step by step:
1948: Atomic Energy Act
The Indian government passed the Atomic Energy Act, creating the legal framework for a peaceful nuclear program. This move laid the foundation for all future research and development.
1954: Department of Atomic Energy Established
Under the leadership of Dr. Homi Jehangir Bhabha, India set up the Department of Atomic Energy (DAE). Bhabha believed that nuclear energy could drive industrial growth and improve living standards across the country.
1969: Tarapur Atomic Power Station
India’s first commercial nuclear power plant began operations at Tarapur in Maharashtra. Commissioned with US assistance, Tarapur marked the country’s entry into civilian nuclear electricity generation.
Nuclear Tests and Strategic Shifts
India’s nuclear program took a major turn in the following decades as it moved from civilian use to demonstrating strategic capabilities.
1974 Pokhran-I (“Smiling Buddha”)
India conducted its first nuclear test in Rajasthan’s Pokhran desert. Codenamed Smiling Buddha, the test announced India’s arrival as a nuclear-capable nation. It also triggered sanctions and export restrictions from Western countries.
1998 Pokhran-II Series
Nearly 25 years later, India carried out five more nuclear tests, collectively known as Pokhran-II. These tests cemented India’s strategic nuclear status and demonstrated technological self-reliance despite international pressure.
Building Indigenous Capabilities
Sanctions forced India to innovate internally. Instead of slowing down, the country doubled down on research and engineering:
- Developed Pressurized Heavy Water Reactors (PHWRs) suited to Indian conditions
- Established a robust domestic supply chain for critical components
- Trained thousands of scientists, engineers, and technicians
- Laid the groundwork for today’s nuclear ecosystem
This blend of early vision, strategic milestones, and indigenous development turned India into one of the world’s leading nuclear nations.
Current State of Nuclear India
| Key Highlight | Details |
| Global Nuclear Power Ranking | Among the top 10 nuclear electricity producers worldwide |
| Active Civilian Reactors | 23 operational reactors across India |
| Installed Nuclear Capacity | 7,480 MW total capacity |
| Share of Electricity Generation | Approximately 3% (2.8-3.1%) |
| Estimated Nuclear Warheads | About 180 warheads as of early 2025 |
| Major Upcoming Projects | Jaitapur, Gorakhpur, Mahi Banswara, Bihar (new approvals); industry consensus and government plans |
Recent Developments: What’s Fueling the Nuclear Boom
India’s nuclear energy landscape has rarely seen so much action in such a short time. From budget allocations to ambitious clean energy targets, several developments are reshaping the future of nuclear power and lifting investor sentiment around nuclear stocks.
Below are some of the most important milestones driving momentum.
Budget 2025: ₹20,000 Crore Nuclear Energy Mission
On February 1, 2025, Finance Minister Nirmala Sitharaman presented Union Budget 2025, announcing a massive ₹20,000 crore plan dedicated to India’s Nuclear Energy Mission. This announcement triggered a sharp rally in the following nuclear power stocks. Its shares jumped as much as 12% in a single trading session.
- BHEL
- Larsen & Toubro (L&T)
- Walchandnagar Industries
- Hindustan Construction Company
- Thermax
- KSB
- Kirloskar Brothers
Small Modular Reactors (SMRs) in Focus
A big highlight of the Budget was India’s commitment to develop at least five indigenously designed Small Modular Reactors (SMRs) by 2033. SMRs are compact, factory-built reactors that can be deployed faster and at lower cost, perfect for India’s decentralized energy needs.
Finance Minister Nirmala Sitharaman said:“The SMR programme will help India accelerate clean energy adoption and attract private investment in nuclear technology.”
Target: 100 GW by 2047
India has set an ambitious goal: 100 gigawatts (GW) of nuclear power capacity by 2047, almost 13 times today’s levels. To make this happen, the government plans to amend:
- The Atomic Energy Act
- The Civil Liability for Nuclear Damage Act
These legal changes are expected to create more space for private companies to participate in building and operating nuclear facilities, another tailwind for nuclear stocks.
Bihar’s First Nuclear Power Plant
In June 2025, the Cabinet approved Bihar’s first nuclear power plant.
This project:
- Is likely to use SMR technology
- Will serve as a model for other states
- Comes alongside a plan for a 1,000 MW battery storage system to balance renewable energy
Power Minister Manohar Lal Khattar underscored that “power for all at all times” is a national priority, and nuclear energy is central to that vision.
Cybersecurity & Grid Resilience
The Centre has also called on states to develop nuclear power “islanding” systems, special setups that isolate critical grids during cyber attacks or massive blackouts.
This push for secure, stable power further cements nuclear’s role as a dependable base-load source.
Growing International Partnerships
India continues to strengthen global nuclear ties:
- Agreements with France and the United States to bring in advanced reactor designs
- Collaboration with Russia to supply components and fuel
These partnerships will likely accelerate technology transfer and support domestic manufacturing, boosting nuclear power stocks tied to heavy engineering and fuel supply.
Advanced Reactor Projects
- The Prototype Fast Breeder Reactor (PFBR) near Kalpakkam is now undergoing critical testing and is expected online by late 2025.
- Its commercial successor, the FBR‑600, is in development and expected to generate 600 MWe per unit.
- In Rajasthan, RAPP‑8 (700 MWe) started feeding power to the grid in March 2025.
Top Nuclear Power Stocks in India
India’s nuclear energy expansion is creating real momentum in the stock market. Several companies are already playing key roles in building, supplying, and maintaining nuclear power infrastructure. If you’re interested in exploring this space, here are some of the top nuclear stocks and nuclear power stocks to keep on your radar.
| Name of the Stock | Market Cap (₹ Cr.) | CMP (₹) | P/E Ratio | Div. Yield (%) |
| Larsen & Toubro (L&T) | 5,07,508 | 3,690 | 33.4 | 0.92 |
| Bharat Heavy Electricals (BHEL) | 92,814 | 267 | 174 | 0.19 |
| Walchandnagar Industries | 1,540 | 228 | – | 0 |
| NTPC Limited | 3,25,178 | 335 | 13.9 | 2.32 |
| Thermax Ltd | 40,880 | 3,431 | 65.2 | 0.42 |
| Kirloskar Brothers | 18,255 | 2,299 | 43.4 | 0.29 |
| KSB Ltd | 14,401 | 827 | 56.6 | 0.48 |
| Hindustan Construction Company (HCC) | 5,580 | 30.7 | 754 | 0 |
Data available is updated as of 30.06.25.
Industry and Policy Voices
Here are a few snapshots capturing the excitement on social media:
Rajeev Mantri (@rmantri):“India is inviting private capital to scale up nuclear power to 100 GW by 2047…”
Defence Matrix:“L&T gears up for India’s nuclear era with plans to focus on small modular reactors…”
TradeTech:“Nuclear Power Corporation of India extends deadlines as more industrial players show interest…”
These comments highlight the growing confidence among investors and industry leaders about the sector’s future.
Why This Matters to Investors
All these developments, from policy reforms to budget support, are setting the stage for a major transformation. For investors, nuclear stocks and nuclear power stocks stand to benefit as:
- New projects unlock billions in orders
- Equipment manufacturers expand capacity
- Private and global firms enter the market
If you’re looking at long-term themes aligned with India’s clean energy vision, the nuclear sector is worth keeping on your radar.
Why Nuclear Power is Critical for India’s Growth
India’s energy demands are enormous and growing by the day. As the country builds new cities, electrifies villages, and powers a booming digital economy, the need for stable and clean electricity has never been greater.
While solar and wind have made tremendous progress, they can’t solve every problem on their own. That’s where nuclear power steps in.
Below are a few reasons why nuclear energy has become such a crucial part of India’s growth story and why so many investors are eyeing nuclear stocks and nuclear power stocks for long-term opportunities.
Reliable Base-Load Power
Unlike renewables that depend on the weather, nuclear power plants run 24/7. They produce consistent electricity day and night, making them perfect for meeting base-load demand. This reliability is essential for industries, hospitals, and data centers that can’t afford interruptions.
Low-Carbon, Clean Energy
India has committed to cut emissions intensity and reach net-zero by 2070. Nuclear power generates almost no greenhouse gases during operation, giving the country a powerful tool to decarbonize without sacrificing growth.
Energy Security
India imports large amounts of coal, oil, and natural gas, making its economy vulnerable to global price swings. Nuclear power helps reduce that dependence. By scaling up domestic uranium mining and reactor capacity, India is improving its energy security for decades to come.
Economic Development and Jobs
Large nuclear projects create thousands of skilled and semi-skilled jobs in engineering, construction, manufacturing, and operations. They also drive demand for specialized equipment and technology, fueling growth for companies behind nuclear power stocks.
Technology Leadership
India has already built its own reactor designs, including the Pressurized Heavy Water Reactor (PHWR) and the fast breeder program. With new plans for Small Modular Reactors (SMRs), the country is positioning itself as a leader in advanced nuclear technology. This leadership attracts global partnerships and boosts credibility in the international energy market.
A Magnet for Private Investment
With policy reforms announced in Budget 2025, like amendments to the Atomic Energy Act and liability laws, the government is opening the door to more private players. For investors, this means a broader set of nuclear stocks to consider, beyond just the traditional public-sector companies.
Aiming for 100 GW by 2047
Perhaps the most ambitious signal yet is India’s target of installing 100 gigawatts of nuclear capacity by 2047, more than 10 times what it has today. Reaching this goal will require massive investments and a robust supply chain creating new growth engines for listed companies tied to the sector.
Together, these factors make nuclear power not just an alternative but a cornerstone of India’s future energy landscape. As this transformation unfolds, nuclear power stocks could play a major role in the portfolios of investors who are looking for long-term themes aligned with clean growth and national priorities.
Risks and Considerations for Investors
While the nuclear sector in India is full of promise, it’s also important to recognize the risks before you invest in nuclear stocks or nuclear power stocks. This industry is shaped by unique challenges that can impact returns, especially over the long timelines typical of large infrastructure projects.
Here are some of the key considerations every investor should weigh carefully:
1. Long Gestation Periods
Nuclear projects don’t happen overnight. From approvals and land acquisition to construction and commissioning, it can take 8–12 years (sometimes longer) for a plant to become operational. This means companies working in the sector often face unpredictable cash flows and project delays that can weigh on their earnings.
2. Regulatory and Policy Risks
The nuclear industry is highly regulated for obvious reasons; safety, liability, and national security. Changes in policy, amendments to laws like the Atomic Energy Act, or stricter compliance requirements can delay or derail projects.
Even though India is opening up to private investment, the sector will remain heavily influenced by government decisions.
3. Public Sentiment and Safety Concerns
Events like the Fukushima disaster in Japan showed how quickly public sentiment can turn against nuclear power. If an accident occurs, or even if there’s a safety scare, projects can get halted and valuations of nuclear stocks can suffer.
4. Global Supply Chain Dependencies
While India has developed strong domestic capabilities, many specialized components and fuels still rely on international suppliers. Geopolitical tensions, sanctions, or trade restrictions could disrupt the supply chain and delay critical projects.
5. Capital-Intensive Business Model
Building reactors is expensive. Companies involved in the sector often require significant capital to bid for and execute projects. If financing costs rise (for example, due to higher interest rates), profitability can be impacted.
6. Commodity and Currency Volatility
Some of the raw materials needed for nuclear equipment are imported. Fluctuations in commodity prices and currency exchange rates can influence project costs and margins.
How to Navigate These Risks
If you decide to invest in nuclear power stocks, here are a few tips:
- Diversify: Avoid putting all your capital in a single stock. Spread your investments across different sectors and industries.
- Focus on Financial Strength: Look for companies with strong balance sheets, healthy order books, and solid execution track records.
- Stay Informed: Keep up with policy developments, international agreements, and project announcements.
- Think Long Term: Nuclear is not a short-term theme. It requires patience and a multi-year investment horizon.
The Future of Nuclear Power in India
India’s nuclear story is still being written, and the next 20 years are likely to be its most ambitious chapter yet. From cutting-edge technologies to bigger policy shifts, several trends point to a future where nuclear power becomes a cornerstone of India’s clean energy mix and a strong theme for investors following nuclear stocks.
Here’s what the road ahead looks like:
100 GW Capacity Target by 2047
In Budget 2025, the government announced an ambitious goal: reaching 100 gigawatts of nuclear capacity by 2047. To put that in perspective, it’s more than ten times today’s installed base.
Meeting this target will require:
- Dozens of new reactors, including large and small designs
- Billions in investments
- A huge boost in domestic manufacturing and skills
For companies involved in construction, engineering, and heavy equipment, this target unlocks massive opportunities.
Small Modular Reactors (SMRs) on the Horizon
Small Modular Reactors are one of the most exciting developments in the nuclear sector globally.
Unlike traditional plants that take a decade to build, SMRs can be:
- Manufactured in factories
- Deployed in remote locations
- Installed faster and with lower upfront costs
India plans to have at least five SMRs operational by 2033, a step that could transform how nuclear power is rolled out across the country.
Policy Reforms and Private Sector Participation
To make these plans possible, the government is already moving to update regulations. Proposed amendments to the Atomic Energy Act and Civil Liability for Nuclear Damage Act aim to:
- Simplify approvals
- Encourage private investments
- Make public-private partnerships easier
This shift is expected to bring in more domestic and international companies, broadening the universe of nuclear power stocks over time.
Integration with Renewable Energy
Nuclear power isn’t growing in isolation. It will increasingly work alongside solar, wind, and large-scale battery storage. The idea is to:
- Use nuclear power for steady, base-load power
- Rely on renewables for peak and flexible generation
This hybrid model will be key to achieving India’s net-zero emissions goal by 2070.
Global Collaboration and Technology Transfer
India is already partnering with:
- France and the United States for advanced reactor designs
- Russia for fuel and component supplies
These collaborations will help accelerate learning curves, improve safety standards, and speed up deployments.
The Big Picture
Put together, these trends point to a future where nuclear power is:
- Delivers clean, reliable electricity to every corner of India.
- Reduces dependence on imported fossil fuels.
- Supports economic growth and job creation.
- Becomes a long-term wealth-building theme for investors tracking nuclear stocks.
Conclusion
India’s nuclear energy story is no longer just about policy papers or distant targets. It’s becoming a real transformation; one plant approval, one budget allocation, and one breakthrough at a time.
From the landmark approval of Bihar’s first nuclear plant to the ₹20,000 crore Nuclear Energy Mission, the country is sending a clear signal: nuclear power will be central to its clean energy future.
For investors, this opens up an exciting corner of the market. Whether you look at established giants like L&T and BHEL, niche suppliers like Walchandnagar Industries, or emerging players focused on Small Modular Reactors, nuclear stocks offer ways to align your portfolio with India’s push for energy security and low-carbon growth.
That said, this journey isn’t risk-free. Long project timelines, regulatory challenges, and public scrutiny will remain part of the landscape. But for patient investors with a long-term perspective, nuclear power stocks could become one of the defining investment themes in the decades ahead.
FAQs
What are nuclear power stocks?
Nuclear power stocks are shares of companies involved in designing, building, or supplying equipment for nuclear power plants. In India, firms like L&T, BHEL, NTPC, and Walchandnagar Industries play major roles. These companies benefit from government investments, long-term nuclear expansion plans, and contracts to build reactors and related infrastructure. Investors consider potential long-term opportunities as India increases its nuclear capacity.
Which is the best nuclear power related stock in India?
There isn’t a single “best” nuclear power stock, as the right choice depends on your investment goals, risk tolerance, and time horizon. That said, companies like Larsen & Toubro (L&T), BHEL, NTPC, and Walchandnagar Industries are often considered key players because of their experience in nuclear engineering and infrastructure. Each has different strengths, from heavy equipment manufacturing to power generation. Before investing, it’s wise to research their financials and understand how nuclear fits into their broader business.
Is nuclear a good long-term investment?
Nuclear power can be an attractive long-term theme in India, especially as the country aims to expand capacity from around 7,500 MW today to 100 GW by 2047. Supportive policies, rising electricity demand, and a focus on reducing carbon emissions all point to steady growth in the sector. However, it’s important to consider the long project timelines, high capital costs, and regulatory factors. For patient investors, nuclear-related companies may offer opportunities aligned with India’s clean energy goals.
Is it good to invest in nuclear power stocks?
Yes, investing in nuclear power stocks appears promising as the World Bank is lifting its long-standing ban on nuclear financing, signaling renewed institutional confidence. Growing electricity demand, especially from AI-driven data centers and global goals to triple nuclear capacity by 2050 , is driving long-term demand. Major tech firms are securing decades-long nuclear contracts, supporting stability. While risks remain, this policy shift and strong fundamentals suggest nuclear stocks offer compelling growth potential for patient investors.
Which nuclear stocks gained after Budget 2025?
After the ₹20,000 crore allocation in Budget 2025, several nuclear power stocks rallied sharply. Shares of BHEL, L&T, Walchandnagar Industries, Thermax, and Hindustan Construction Company surged up to 12% as investors reacted positively to plans for more reactors, Small Modular Reactors (SMRs), and policy reforms. This rally reflected growing confidence in India’s nuclear energy mission and potential future contracts for listed companies.
