India’s long-standing dream of a robust civil nuclear power programme may finally be approaching a decisive pivot. By proposing amendments to its nuclear liability law ~ particularly capping the compensation suppliers must pay in case of an accident ~ the government is clearly hoping to break a logjam that has kept American nuclear technology firms at bay for over a decade.

This is a strategic and necessary move, but it must be approached with both caution and foresight. The current Civil Nuclear Liability Damage Act, enacted in 2010, emerged from the long shadow cast by the Bhopal gas tragedy. It was a conscious assertion of India’s moral obligation to protect its citizens, placing heavy legal responsibility on suppliers of nuclear equipment.

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But in doing so, it inadvertently pushed away potential foreign partners who saw the absence of a liability cap as a commercial risk too great to bear. By aligning the law more closely with global norms ~ where the onus of safety and liability largely rests with the operator rather than the supplier ~ India is sending a signal. It acknowledges that if the country is serious about scaling up its nuclear capacity 12-fold by 2047, international collaboration is not optional ~ it is essential. Technology, capital, and expertise from established nuclear players will be critical to achieving this goal. Nuclear energy is perhaps the only large-scale, firm power option that balances climate obligations with the growing energy appetite of a developing economy. Unlike solar or wind, it offers reliability alongside zero emissions. But the real issue is not just legal reform. A cap on supplier liability may attract American and other Western firms, but nuclear energy in India still suffers from deeper structural challenges. Project delays, cost overruns, bureaucratic inertia, and an opaque regulatory framework have all contributed to the sector’s sluggish growth.

Even today, nuclear energy contributes less than 3 per cent to India’s total power generation, despite decades of ambition. Moreover, the government must take care that the liability cap does not become a carte blanche for supplier negligence. Safety should remain paramount. The law should clearly define the circumstances under which the cap applies, and incorporate strong safeguards to hold operators accountable. A disaster in the nuclear sector would not only be catastrophic in human terms, but could also derail the clean energy transition India so desperately needs.

The opening up of the sector to Indian private players is another welcome step, and large conglomerates have already expressed interest. But for private investment to flourish there must be absolute clarity on long-term policy, pricing mechanisms, and regulatory independence. India’s nuclear journey now stands at a critical juncture. The easing of liability laws is not a dilution of responsibility ~ it is a pragmatic recalibration. If implemented thoughtfully, it could unlock a new era of energy security, economic growth, and climate leadership. But this must be done without compromising the safety and trust of the people it is meant to serve.