India’s economic future will hinge on how decisively it navigates the energy transition, with nuclear power and private investment set to take center stage, a parliamentary committee has warned.

The Standing Committee on Finance, chaired by Bhartruhari Mahtab, said in its Twenty-Sixth Report on the “Roadmap for Indian Economic Growth in Light of Global Economic and Geopolitical Circumstances” that clean energy is not merely an environmental necessity but a strategic lever for growth, trade competitiveness and energy security.

Demand Meets Decarbonization

India’s energy demand is projected to outpace that of any major economy over the next two decades, driven by industrialization, urbanization and rising household consumption. Coal and oil remain dominant, but the panel cautioned that over-reliance on fossil fuels leaves the economy exposed to price shocks, fiscal stress and new trade barriers such as the European Union’s Carbon Border Adjustment Mechanism.

For exporters in steel, aluminum and other energy-intensive sectors, a slow pivot to low-carbon power could mean higher tariffs and eroded market share.

Nuclear as a Stabilizer

The committee underlined nuclear energy’s importance as a steady, non-weather-dependent source of power to complement the rapid build-out of solar and wind. It welcomed the government’s increased allocation for nuclear power — ₹25,091 crore ($3 billion) in FY26, up from ₹17,704 crore ($2.1 billion) in FY24 — but pressed for tighter timelines and more innovative financing to tackle high upfront costs and long gestation periods.

Global Majors Circle India

The renewed push is expected to revive interest from international nuclear firms that have long sought entry into India. France’s EDF, Russia’s Rosatom and U.S.-based Westinghouse are among the most prominent players, each with stalled projects on the table.

EDF’s Jaitapur project in Maharashtra, billed as the world’s largest nuclear power station, has been stuck in negotiations over costs and liability. Westinghouse’s Kovvada project in Andhra Pradesh has yet to break ground amid financing hurdles. Meanwhile, Rosatom is expanding Kudankulam in Tamil Nadu, though delays have slowed commissioning. Combined, these ventures could add more than 20 GW of capacity, but progress depends on policy clarity, financing frameworks and local buy-in.

NPCIL at the Core

The Nuclear Power Corporation of India Ltd. (NPCIL) remains the linchpin of India’s atomic sector, operating all current reactors. The committee acknowledged that while foreign technology and private capital will be critical, NPCIL will continue to anchor development and oversee safety. Likely future models will see NPCIL retain majority stakes, with overseas partners and domestic private players contributing capital, project management and innovation. Strengthening NPCIL’s technical and financial capacity, it said, is essential to meeting expansion targets.

Private Capital in the Mix

In a marked shift from the past, the panel said private players must be more deeply integrated into the transition. While flagship programmes such as the National Green Hydrogen Mission and production-linked incentives for solar, storage and advanced chemistry cells are under way, the report stressed that scaling up clean energy requires private investment and risk-taking.

It urged more public-private partnerships in grid modernization, storage, hydrogen and electric mobility, alongside domestic capital mobilization through green bonds and blended finance.

Renewables and the Grid Gap

Budgetary support for renewables has more than doubled in recent years, with allocations for the Ministry of New and Renewable Energy rising to ₹12,000 crore ($1.45 billion) in FY26 from ₹5,331 crore ($640 million) in FY22. Solar parks, rooftop schemes, battery storage pilots and interstate transmission projects remain top priorities.

But the committee warned that weak transmission infrastructure is already constraining integration of renewable power, creating a bottleneck that could blunt India’s clean-energy ambitions.

Jobs and Just Transition

The report also flagged the social risks of phasing down coal. Millions of livelihoods in mining and allied sectors are vulnerable, and the committee urged targeted reskilling, social protection and region-specific industrial policies to avoid unrest and ensure a “just transition.”

Strategic Imperative

The committee’s message was clear: India must accelerate its energy transition with nuclear as a backbone for stability and private capital as a force multiplier. Without this, it risks not only climate vulnerability but also a loss of competitiveness in global trade.

“The energy transition is integral to sustaining growth and safeguarding competitiveness in a changing global order,” the report concluded. “Private participation and nuclear expansion, alongside renewable energy, will be critical in anchoring India’s long-term energy security.”

Related posts:

Bangladesh’s $67 B Budget Focuses on Inflation Control and Renewable Energy, Faces IMF and Transparency Hurdles Waaree Solar Americas Launches First Solar Module in Texas: A Breakthrough for US-India Clean Energy Collaboration USAID and ISA Join Hands to Combat Climate Crisis and Advance Renewable Energy Adoption From a 100 to a 600! 20 Interesting Facts About the 100-Crore Club