Nuclear energy stocks in India fell up to 6% after the US-India nuclear deal announcement. Experts caution that Indian firms may have limited roles in reactor development projects.
Indian nuclear energy stocks experienced a sharp decline of up to 6% following the announcement of a major US-India nuclear deal. Prime Minister Narendra Modi and former US President Donald Trump revealed plans to advance the construction of American-designed nuclear reactors in India. While this development underscores growing bilateral cooperation, industry experts are raising concerns about the restricted role Indian companies might play in the execution of these projects.
Key Highlights of the US-India Nuclear Deal:
- Collaboration on American-designed nuclear reactors for India.
- Potential partnerships with leading US firms like Westinghouse and General Electric.
- Long-term strategic energy cooperation between the two nations.
Market Reaction:
- Nuclear sector stocks in India fell by up to 6% as investors reacted to the news.
- Concerns arose regarding Indian companies being relegated to secondary roles, focusing more on construction and maintenance rather than core reactor development.
Expert Insights:
- Analysts warn that Indian firms could miss out on high-value contracts as the primary technology and critical components are likely to be imported from the US.
- However, some believe the deal could still offer Indian players opportunities in supporting sectors like construction, engineering, and plant operations.
Future Outlook: While the immediate market response has been negative, the US-India nuclear agreement could strengthen India’s nuclear power capacity in the long term. Indian companies might gradually benefit from knowledge transfer and joint ventures as the collaboration progresses.
