The UK has removed its 4% import duty on nuclear reactors from India. This opens new pathways for Indian nuclear technology in global markets. It’s a significant moment in India’s ambition to export its nuclear expertise, especially through the Comprehensive Economic Trade Agreement (CETA) signed on July 24.
### A Milestone for Indian Nuclear Technology
This deal marks the first time India has achieved zero-duty access for nuclear reactors. It’s happening at a crucial time as India has developed 220 MW small modular reactors (SMRs), known as Bharat Small Reactors (BSRs). These reactors provide cleaner, cost-effective energy and are designed for sectors that struggle with carbon emissions, like steel and aluminum production.
### Expanding Opportunities in Exports
India’s nuclear energy sector is evolving. Once a space dominated by the government, it’s now welcoming state governments and private players. The Nuclear Power Corporation of India Ltd (NPCIL) is at the forefront, working on an export policy for Indian-built reactors.
An official from NPCIL says, “Exporting is a natural next step, similar to our defense sector’s global reach.” This trade deal with the UK could position India favorably in the nuclear export market, especially since the BSRs are expected to be significantly cheaper than comparable models from the West.
### A Growing Global Demand
There’s an increasing global appetite for small modular reactors due to their adaptability and lower initial costs. Indian BSRs may be at least 50% cheaper than those from South Korea, currently perceived as the cost leader after Russia. In comparison, Indian reactors could rival the pricier offerings from the US and France, enhancing India’s stance in the international market.
### Synergy with UK’s Energy Goals
The timing of the UK’s tariff removal is strategic. The UK is investing heavily in nuclear energy to meet its net-zero carbon emissions goal by 2050. India’s SMRs align well with this aim, providing a low-carbon, modular solution that could aid the UK’s transition to clean energy.
### Ambitious Growth Plans
India aims to ramp up its nuclear capacity from 8.7 GW today to 22.48 GW by 2031-32, with a long-term goal of reaching 100 GW by 2047. The development and potential export of BSRs will be key to achieving these domestic and international targets.
### Limitations on UK Imports
While the trade deal cuts import duties on nuclear reactors from the UK from 8.2% to zero, officials note that the UK produces very few reactors domestically. Thus, India is likely to import only a small number from the UK.
### A New Era of Nuclear Diplomacy
This trade agreement signifies a historic opportunity for India to export its nuclear technology, particularly BSRs. As countries look for cleaner energy alternatives, India is emerging as a reliable and economical supplier. This sets the stage for a transformative new chapter in nuclear diplomacy and strategic energy exports.
Recent data shows that countries around the world are investing more in nuclear energy as part of their climate plans. A report by the International Atomic Energy Agency (IAEA) indicates that the global market for nuclear technology is expected to grow to $100 billion by 2030. As India positions itself as a key player, the future looks promising for its nuclear sector.
Source link
