Top 10 Lessons from India’s Space Sector to Supercharge Nuclear Energy Growth
India’s space sector has undergone a significant transformation in recent years, driven by private sector participation, strategic policy reforms, and global partnerships. The introduction of private players has fueled rapid growth, with India's space economy projected to expand from $8.4 billion to $44 billion by 2033. Recognizing this success, Science and Technology Minister Jitendra Singh has emphasized that a similar approach in the nuclear sector could accelerate its development.
India has set a target of achieving 100 GW of nuclear power capacity by 2047, a goal that requires significant investment, policy support, and private sector involvement. Drawing parallels with the space industry, the nuclear sector can benefit from structural reforms, competition-driven innovation, and international collaboration. By analyzing the evolution of India’s space industry, key lessons emerge that could help unlock the full potential of nuclear energy and position India as a global leader in advanced nuclear technologies.
1) Policy Reforms as a Catalyst for Growth
India’s space sector witnessed a turning point with decisive policy interventions. In June 2020, the government opened the space industry to private players, establishing the Indian National Space Promotion and Authorization Centre (IN-SPACe) to facilitate and regulate private sector participation. This policy shift enabled over 200 private companies to enter the space sector, spurring competition and innovation.
For the nuclear industry, similar reforms are crucial. Amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act are set to be discussed in Parliament to enable private investment in nuclear power generation. These legislative changes would establish a framework for private sector participation, fostering investment, innovation, and operational efficiency. Clear regulatory structures would signal India’s commitment to modernizing its nuclear sector, creating an environment conducive to technological advancement and large-scale deployment.
2) Competition as a Driver of Innovation
The entry of private companies into the space sector has fueled technological breakthroughs. Startups like Skyroot Aerospace and Agnikul Cosmos have successfully developed indigenous launch vehicles, reducing dependence on foreign technology. The launch of Vikram-S, India’s first privately built rocket, in November 2022, demonstrated the power of competitive innovation.
In the nuclear sector, allowing private firms to engage in research and development could accelerate advancements in reactor technology, safety mechanisms, and operational efficiency. Competition could drive the development of Small Modular Reactors (SMRs) and advanced thorium-based reactors, leveraging India's vast thorium reserves, which constitute 25% of the global total. Leading energy firms, such as Tata Power, are already exploring opportunities in the SMR market as part of their clean energy initiatives.
3) Attracting Investments to Accelerate Expansion
The privatization of the space sector has led to significant financial inflows. In 2023, Indian space tech startups secured $126 million in funding, reflecting a 7% increase from the previous year. This capital infusion has enabled ambitious projects and technological advancements.
A similar investment wave could propel the nuclear sector. Jindal Nuclear, a subsidiary of the Naveen Jindal Group, has announced plans to develop 18 GWe of nuclear power capacity in India over the next two decades, with an estimated investment of INR 1.80 lakh crore (USD 21 billion). The company aims to build, own, and operate nuclear power plants, focusing on Bharat Small Reactors (BSRs), SMRs, and Gen-IV reactors. Other major energy firms, including Tata Power, Reliance Industries, Adani Power, and Vedanta Ltd., are expected to follow suit, bringing substantial private capital into nuclear energy.
4) Public-Private Partnerships to Leverage Strengths
The collaboration between the Indian Space Research Organisation (ISRO) and private firms has been instrumental in India’s space success. These partnerships have combined ISRO’s expertise and infrastructure with the agility and innovation of the private sector, leading to landmark achievements like Chandrayaan-2.
Applying this model to nuclear energy could expedite the development and deployment of new reactors. Partnerships between the Nuclear Power Corporation of India Limited (NPCIL) and private entities could address key challenges, including project delays and cost overruns. A collaborative approach could accelerate stalled projects, such as the expansion of the Kudankulam Nuclear Power Plant, ensuring timely and cost-effective execution.
5) Indigenous Technology Development for Self-Reliance
India’s space sector has successfully reduced reliance on foreign suppliers by developing indigenous technologies, including cryogenic engines and satellite systems. The advancements in PSLV, GSLV, and SSLV highlight the country’s ability to achieve self-sufficiency in high-tech industries.
The nuclear sector has made similar strides, particularly in pressurized heavy water reactor (PHWR) technology. Further investment in domestic SMRs and next-generation reactors would strengthen India’s self-reliance. Encouraging private companies to invest in reactor design, fuel fabrication, and waste management would align with the Make in India initiative while enhancing energy security. India’s expertise in PHWR technology also positions it as a potential exporter of nuclear solutions to emerging markets.
6) Fostering an Entrepreneurial Ecosystem
Opening the space sector to private players has led to the emergence of over 100 startups, fostering a dynamic entrepreneurial ecosystem. Initiatives like ISRO’s Space Entrepreneurship & Enterprise Development (SEED) program have nurtured talent and encouraged innovation.
A similar environment in the nuclear sector could yield significant benefits. By supporting startups focused on nuclear technologies, safety solutions, and ancillary services, the industry could stimulate innovation and job creation. Establishing incubation centers and innovation hubs dedicated to nuclear energy could accelerate the commercialization of advanced nuclear technologies.
7) International Collaboration to Expand Capabilities
Global partnerships have played a vital role in India’s space achievements. Collaborations with NASA, the European Space Agency (ESA), and other international entities have facilitated technology transfers and knowledge exchange.
In the nuclear sector, deeper engagement with experienced nuclear nations—including the United States, France, Russia, and Japan—could provide India access to advanced reactor designs, fuel technologies, and safety standards. Strengthening international alliances would not only enhance India’s nuclear capabilities but also position the country as a key participant in global nuclear initiatives.
8) Expanding Global Market Access
India’s space sector has successfully entered the global market, offering cost-effective satellite launches and space services. The commercial arm of ISRO, NewSpace India Limited (NSIL), has played a pivotal role in monetizing these capabilities.
The nuclear sector can follow a similar trajectory by tapping into export opportunities for reactors, fuel, and nuclear services. India’s leadership in PHWR technology and its potential in SMRs could enable it to compete in emerging nuclear markets, particularly in Africa and Southeast Asia. Establishing a dedicated commercial entity for nuclear exports, similar to NSIL, could help India expand its global footprint in the nuclear industry.
9) Transparency and Public Engagement to Build Trust
ISRO’s transparent communication about its missions has fostered public trust and national pride. The nuclear sector, often met with apprehension due to safety concerns, must adopt a similar approach.
Openly communicating safety measures, environmental safeguards, and community benefits can mitigate opposition and enhance public confidence in nuclear energy. Proactive engagement through educational initiatives can demystify nuclear technology and highlight its role in sustainable development.
10) Economic Growth and Job Creation
The expansion of the space sector has generated significant economic benefits, driving job creation in related industries such as manufacturing, information technology, and education. The nuclear sector has the potential to deliver even greater economic impact.
The construction and operation of nuclear power plants create thousands of direct and indirect jobs, from engineering and construction to operations and maintenance. A robust nuclear industry would also stimulate growth in metallurgy, chemical engineering, and environmental sciences. Furthermore, a reliable nuclear energy supply is essential for industrial expansion and long-term economic stability.
India’s space sector serves as a compelling model for the nuclear industry, showcasing how strategic reforms, private participation, and global collaborations can drive technological and economic progress. As the nuclear sector moves to replicate this success, momentum is already building with the entry of private players, growing investments, and policy advancements. The Union Budget 2025 has allocated Rs. 20,000 crore for SMR research and development under the Nuclear Energy Mission, paving the way for increased investment and industry participation. The introduction of Bharat Small Modular Reactors (BSMRs) and strengthened collaborations between NPCIL and private enterprises will be key to shaping a competitive SMR market. This shift signals a transformative phase where nuclear energy can enhance India’s energy security, accelerate industrial growth, and position the country as a global leader in advanced nuclear technologies, much like its rising stature in the space sector.
