Why India's Uranium Deal With Australia Could Transform Its Nuclear Future

India's installed nuclear capacity currently stands at around 8 GW, but the government's vision is to raise that figure to 100 GW by 2047.

09 Jul 2026, 14:54 · www.ndtv.com

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India secured uranium supply deal with Australia to boost nuclear power expansion
Agreement operationalises 2014 civil nuclear partnership for peaceful uranium trade
India aims to increase nuclear capacity from 8 GW to 100 GW by 2047

What impact will this agreement have on India's net zero goal?

India's ambitious plan to expand nuclear power received a major boost on Thursday after Prime Minister Narendra Modi secured a long-awaited uranium supply arrangement with Australia, home to the world's largest known uranium reserves, accounting for nearly one-third of global resources. The breakthrough comes at a critical moment as India seeks to increase nuclear power generation from about 8 GW today to an ambitious 100 GW by 2047.

The agreement marks the operationalisation of a civil nuclear partnership that was first signed in 2014 but remained largely dormant for more than a decade. Australia and India have now finalised the administrative arrangements necessary for the commercial supply of Australian uranium to India for peaceful purposes under International Atomic Energy Agency (IAEA) safeguards.

Announcing the breakthrough after talks with Australian Prime Minister Anthony Albanese in Melbourne, PM Modi said, "Today, we have signed an important agreement in the field of nuclear energy. This will open the way for uranium supplies from Australia to India and give new impetus to our clean energy objectives."

According to the World Nuclear Association, "Australia's known uranium resources are the world's largest, almost one-third of the world total. In 2022, Australia produced 4,820 tonnes of uranium. It was the world's fourth-largest producer, accounting for 8 per cent of global uranium production. All Australia's uranium production is exported."

India's Ministry of External Affairs said Australia and India had finalised the administrative arrangements necessary to enable the export of Australian uranium to India exclusively for peaceful purposes under IAEA safeguards, as provided under the Australia-India Nuclear Cooperation Agreement (2015).

India's private industry, which hopes to set up several new nuclear reactors, is expected to welcome the development, as assured nuclear fuel supplies are critical for reactors that require continuous fuel over nearly 60 years of operation. Major industrial groups, including Adani, Reliance, Tata, JSW, Jindal and Bajaj, have expressed interest in establishing nuclear power plants.

For India, the development carries significance far beyond a simple fuel purchase. The country has long faced a structural challenge in its nuclear programme. While India possesses one of the world's largest thorium reserves, its uranium reserves are relatively limited. India's three-stage nuclear power programme was specifically designed to overcome this constraint by making the best use of available uranium resources before eventually transitioning to thorium-based energy systems. Union Science Minister Dr Jitendra Singh has also informed Parliament that India holds limited uranium reserves.

Domestic uranium deposits, including major reserves in Andhra Pradesh, have supported India's nuclear programme, but experts have consistently maintained that imported uranium will remain essential if the country is to rapidly expand nuclear power generation. The challenge becomes even greater as New Delhi pursues its twin objectives of energy security and achieving net zero emissions by 2070.

The timing of the agreement is particularly significant because it comes months after the passage of the SHANTI Act, formally known as the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Act, 2025. The legislation is widely viewed as the biggest reform of India's nuclear sector in decades. It modernises the country's nuclear framework and opens the door to greater private sector participation under regulatory oversight.

The SHANTI Act was enacted specifically to support India's goal of reaching 100 GW of nuclear capacity by 2047. Government documents describe the legislation as a key pillar of the Nuclear Energy Mission, which aims to transform nuclear power from a niche contributor into a major component of India's low-carbon electricity supply.

Industry observers believe the combination of assured uranium supplies and a new policy framework could encourage significant private investment in India's nuclear sector. Nuclear Power Corporation of India Limited (NPCIL) former Chairman and Managing Director BC Pathak said the SHANTI Act opens the nuclear power sector to multiple companies and will help mobilise national resources to achieve the 100 GW target.

Australia's role in this journey could prove crucial. The country possesses the world's largest known uranium resources and accounts for a significant share of global reserves. Despite its massive resource base, Australia does not operate nuclear power plants and exports all of its uranium production. In 2022, it ranked as the world's fourth-largest uranium producer.

During his Australia visit, PM Modi also highlighted the strategic nature of the partnership, telling business leaders that Australia's vast uranium reserves are directly linked to India's nuclear future. He described cooperation in the sector as a "historic opportunity" for both countries.

The agreement also closes a chapter that began more than a decade ago. In 2014, India and Australia signed a civil nuclear cooperation agreement envisioning uranium trade and broader cooperation in the peaceful uses of nuclear energy. The original understanding recognised India's commitment to nuclear energy as a tool for sustainable development and energy security while identifying Australia as a long-term, reliable supplier of uranium. Yet implementation remained slow because of safeguards and administrative requirements.

Now, with those arrangements finally in place, India has secured access to one of the most important fuel sources needed to support its nuclear expansion plans.

For a country seeking rapid economic growth while simultaneously reducing carbon emissions, nuclear energy is increasingly becoming a strategic necessity. India's installed nuclear capacity currently stands at around 8 GW, but the government's vision is to raise that figure to 100 GW by 2047. Achieving such a dramatic increase will require not only new reactors and private investment but also dependable long-term fuel supplies.

Viewed in that context, the Australia uranium agreement may be remembered as one of the first major international victories following the SHANTI Act. It gives India access to fuel from the world's largest uranium resource base, strengthens energy security, supports the transition to low-carbon electricity and provides fresh momentum to one of the world's most ambitious nuclear expansion programmes.

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