Author: PPD Team Date: 07/01/2025
The US Government is taking steps to lift restrictions on Indian nuclear entities to strengthen energy relations and reinforce the 2005 nuclear deal.
US National Security Advisor Jake Sullivan stated that the US is finalizing efforts to remove long-standing regulations preventing civil nuclear cooperation between India’s top nuclear entities and US companies. Since the mid-2000s, the US and India have discussed the supply of US nuclear reactors to meet India’s growing energy needs.
The 2007 agreement between then-President George W. Bush and India allowed the US to sell civilian nuclear technology, though aligning Indian liability laws with international standards has been a challenge. These standards require the plant operator, not the manufacturer, to bear the cost of accidents.
The US had imposed restrictions on over 200 Indian entities after India’s 1998 nuclear tests. Many have since been removed from the list, though at least four entities from India’s Department of Atomic Energy remain restricted.
India’s nuclear compensation laws have hindered international power plant deals, delaying the country’s goal of adding 20 GW of nuclear capacity from 2020 to 2030. In 2019, an agreement was made to construct six US nuclear power plants in India.