The Indian government is reportedly preparing to unveil a Production Linked Incentive (PLI) scheme for the nuclear sector in the upcoming Union Budget 2026-27, marking a strategic effort to build domestic manufacturing capacity for critical nuclear equipment. The incentive package under consideration could be in the range of ₹18,000–20,000 crore, according to sources familiar with government discussions.
Boosting Domestic Manufacturing for Strategic Components
The proposed PLI scheme is expected to focus on high-integrity components that currently face long lead times and heavy dependence on imports due to limited local manufacturing. Items likely to be covered under the scheme include heavy forgings, reactor pressure vessels, specialised steel alloys and other critical nuclear parts essential for building and maintaining nuclear power infrastructure.
Domestic production of these components has traditionally been constrained by technical complexity and long gestation periods, both of which have kept India reliant on foreign suppliers for many reactor sub-systems. The PLI scheme aims to reduce this dependency by incentivising investments in manufacturing capacity, technology adoption and skilled labour in strategic nuclear supplies.
Context: Sector Reforms and Private Participation
The proposal follows the enactment of the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, which opened the nuclear sector to private participation by limiting liability for suppliers and creating clearer frameworks for commercial engagement. Analysts view the potential PLI scheme as a complementary policy lever to attract investment and build a supply ecosystem around India’s expanding nuclear power ambitions.
India has been steadily advancing its nuclear energy programme, with new plants under development and plans for further capacity expansion. A strong domestic manufacturing base for nuclear components could help reduce project delays, control costs and support long-term energy security goals.
Strategic and Economic Implications
The PLI incentive could enable India to compete more effectively in the global nuclear supply chain while stimulating industrial activity in related engineering segments. By coupling manufacturing incentives with regulatory reforms, the government aims to create a reliable ecosystem that supports both civilian nuclear expansion and potential exports of specialised equipment in the future.
While final details such as eligibility criteria, timelines and implementation structures are still being finalised, the move underscores the government’s broader focus on self-reliance in strategic technologies and the use of competitive incentives to drive industrial transformation through policy innovation.
