India Plans Nuclear Liability Reforms to Attract U.S. Firms

India is preparing to amend its nuclear liability laws by capping accident-related penalties for equipment suppliers, a move designed to attract U.S. companies that have avoided the market due to the risk of unlimited liability under the current framework. The proposed changes would remove a key clause from the 2010 Civil Nuclear Liability Damage Act, shifting responsibility for safety to the operator rather than the supplier, and aligning with international norms. This reform is part of the Modi government's strategy to increase India's nuclear power capacity twelve-fold by 2047 and to strengthen trade relations with the U.S., aiming for $500 billion in bilateral trade by 2030. U.S. firms such as General Electric and Westinghouse, previously deterred by India's stringent liability laws, are expected to benefit from the amendments. The government is optimistic about securing parliamentary approval for the changes during the upcoming monsoon session. Analysts consider the passage of this law crucial for finalizing a major U.S.-India trade agreement and meeting India's clean energy goals.