Top sectors that could benefit from corporate nuclear power investment

India stands at a decisive inflection point in its long-term energy transition. Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Act (SHANTI Act) on December 15, 2025 marked a significant shift. It opened the nuclear power sector to private participation for the first time since independence. The regulatory liberalisation along India’s stated objective of achieving 100 GW of nuclear capacity by 2047 signals a structural expansion at a larger scale. For traders and investors, identifying these sectors which can help them benefit is important. 

Understanding corporate nuclear power investment

Private involvement in nuclear power projects includes financing, constructing, supplying equipment for the project, and operating the facilities. For many years, there was no private corporation or investment in the energy sector. The SHANTI Act (which was passed by the Government of India) allows private Indian businesses and companies that have a majority Indian-owned stake to take an active role in the production of nuclear energy, with a maximum foreign direct investment (FDI) of 49%.

Corporate participation includes far more than just generation of electricity. Engineering and construction, manufacturing and supplying the components for the generating facilities, managing the engineering, procurement of required equipment is significant. This is true as well for general transmission facilities, producing chemicals for use in nuclear power generation, and many of the newly emerging technologies, including hydrogen production. The 2025–26 Union Budget provided a further endorsement of this policy by including a ₹20,000 crore (approximately $2.8 billion) allocation to the Nuclear Energy Mission to help establish a sustainable pipeline of reliable demand for the multitude of industrial segments connected with nuclear energy production.

Key sectors set to benefit

1. Heavy engineering and manufacturing

High precision engineering is required for nuclear facilities, which are also one of the most expensive infrastructures. Companies with experience in the field of nuclear power will be able to take advantage of new plants, steam generators, pressure vessels and safety equipment. Long lead times and strict certification standards favour established companies, providing visibility of orders for several years as well as steady and predictable revenues.

2. Railway electrification and traction power

Indian Railways consume approximately 20 billion kilowatt-hours of electricity annually. The government plans on sourcing 10 GW of traction energy by 2030, including around 3 GW from nuclear sources, using small modular reactors. This initiative suggests capital deployment of ₹8,000 to ₹10,000 crores and supports opportunities across EPC execution, power equipment manufacturing, and transmission networks.

3. Data centres and artificial intelligence infrastructure

India’s data centre industry is undergoing rapid expansion, which is driven by artificial intelligence (AI) workloads and cloud adoption. The installed capacity is projected to rise from under 1 GW today to over 9 GW by 2030. With electricity accounting for a substantial share of both capital and operating costs, data centre operators require continuous, high-reliability power. Nuclear energy, with capacity factors exceeding 90%, offers a compelling solution compared to intermittent renewable sources.

4. Industrial decarbonisation

Energy-intensive sectors such as steel, aluminium, and mineral processing account for over 40% of industrial electricity demand. Small modular reactors, designed for captive industrial use, enable on-site decarbonisation while improving energy security. Government estimates suggest investment potential exceeding ₹20,000 crores in this segment alone, driven by both cost predictability and emissions compliance.

5. Capital goods, EPC, and transmission

India’s largest power utilities have articulated long-term nuclear expansion plans requiring cumulative investment running into tens of billions of dollars. This in turn shows major opportunities for reactor construction, balance-of-plant equipment, and high-capacity transmission systems. 

6. Hydrogen production and industrial heat

Advantaged reactor design producing very high temperatures sustains thermochemical hydrogen production. Pilot projects at nuclear sites prove viability, providing nuclear energy an avenue in India’s larger hydrogen and net-zero goals. The application may develop into a significant growth opportunity for specialised engineering firms in the future.

Conclusion

India’s corporate nuclear investment opportunity is a unique alignment of policy clarity, technological maturity, and structural energy demand. For corporate investors, the opportunity extends far beyond utilities to engineering, manufacturing, transmission, and as the country looks beyond nuclear into clean-energy technologies. Despite the patient, long gestation of a nuclear project, the clear cash flows and policy-visibility make the investment attractive from a long-term risk-adjusted return perspective. As the country looks towards clean and reliable baseload power, corporate nuclear investment is becoming an integral part of India’s energy architecture and capital markets.