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MC EXCLUSIVE India-UK trade deal opens doors for export of Indian nuclear reactors

The zero duty on Indian nuclear reactors will make BSRs or Bharat Small Reactors at least 50% cheaper than the ones sold by South Korea, considered the cheapest globally after Russia. India will also have a major price advantage over expensive reactors sold by western countries like the US and France.

July 31, 2025 / 11:02 IST
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The UK has slashed import duty on nuclear reactors to nil from 4 percent for India as per the finer details of the comprehensive economic trade agreement (CETA) signed between the two nations on July 24. While the UK is the first country India managed to get a zero tariff for its nuclear energy mission, the government is now considering exporting its indigenous small nuclear reactors, touted to be cheaper than those of the US, France and South Korea, two senior government officials told Moneycontrol.

Currently, India’s nuclear energy sector is completely regulated by the government and there was no scope of exports because the country was in the process of researching and building its own reactors.

The zero duty for nuclear reactors in the India-UK trade deal has come at a significant time for India. One, because after decades of work, the government has built its own small modular reactors (SMRs) of 220 MW, named Bharat Small Reactors (BSRs); two, India has announced a National Nuclear Energy Mission to ensure energy security using cleaner fuels and to use BSRs to decarbonise hard-to-abate industries. To achieve this, the government is working on opening up nuclear energy to state governments and the private sector.

The state-owned Nuclear Power Corporation of India Ltd (NPCIL), which currently is the country's sole builder and operator of nuclear power plants, has begun discussions on its export plan and policy, one of the officials quoted above said.

“Getting into exports is a natural progression for NPCIL. The progression will be similar to the defence sector where now we are seeing 'Made in India' products being exported. The India-UK trade deal gives India a gateway for its nuclear reactors, which are way cheaper than the ones offered by western countries,” said one of the senior government officials.

Also read: RIL, Adani, Tata, others look to partner NPCIL in nuclear energy push to lower emissions.

BSRs are compact 220 MW pressurised heavy water reactors (PHWRs) developed by India that can act as captive power plants and provide a sustainable, low-carbon energy solution for industries such as steel, aluminium and metals.

Globally, there is a growing demand for small nuclear reactors due to their flexibility, scalability and lower costs compared to traditional large setups.

The zero duty on Indian nuclear reactors by the UK will make BSRs at least 50 percent cheaper than the ones sold by South Korea, considered the cheapest globally after Russia. India will have a significant price advantage over reactors sold by western countries like the US and France, which are the most expensive ones, the official said.

Russia, South Korea, the US and France are the key manufacturers and exporters of nuclear reactors at present.

There is going to be demand for SMRs in the UK as its government is putting nuclear at the centre of its strategy to reach net zero carbon emissions by 2050, alongside renewables. The UK government is aiming for at least 25 GW of nuclear generating capacity by 2050.

India’s plan is more ambitious with the country aiming to increase its nuclear power capacity from 8.7 GW to 22.48 GW by 2031-32 and eventually 100 GW by 2047.

As part of the trade deal, India has also slashed tariffs on nuclear reactors imported from the UK to nil from 8.2 percent. However, officials said since the UK does not have many companies that build nuclear reactors, imports from the country are likely to be limited.

Sweta Goswami
first published: Jul 30, 2025 05:40 pm

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