India and Australia have taken a major step towards deepening their civil nuclear partnership with the finalisation of the Administrative Arrangement under the India-Australia Civil Nuclear Cooperation Agreement, paving the way for long-term exports of Australian uranium to support India’s expanding nuclear energy programme.
The agreement was finalised during the Third India-Australia Annual Summit held in Melbourne on July 9, 2026, where the two countries reaffirmed their Comprehensive Strategic Partnership and expanded cooperation across maritime security, energy security, cyber cooperation, critical technologies, skill development and entrepreneurship.
The Administrative Arrangement operationalises the India-Australia Civil Nuclear Cooperation Agreement by establishing the framework for long-term exports of Australian uranium to India exclusively for peaceful purposes under the safeguards of the International Atomic Energy Agency (IAEA).
With Australia possessing the world’s largest uranium reserves – accounting for more than one-third of global resources – the agreement is expected to significantly strengthen the fuel base for India’s rapidly expanding nuclear power programme and enhance the country’s long-term energy security.
Fuel security to support Nuclear Energy Mission
The uranium supply arrangement complements India’s ambitious Nuclear Energy Mission, which targets 100 GW of nuclear power capacity by 2047.
It also reinforces the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, enacted in December 2025, which allows Indian private companies and joint ventures to participate in building, owning and operating nuclear power plants.
According to the government, assured long-term uranium supplies will provide greater confidence to developers, investors and industry, supporting timely implementation of nuclear projects. Together, the SHANTI Act and the Administrative Arrangement create a stronger policy framework while ensuring fuel security for expanding nuclear power generation to support India’s long-term economic growth.
India’s expanding nuclear programme
India has been steadily expanding its nuclear energy programme to improve energy security while supporting its transition to a low-carbon economy.
At present, the country operates 24 nuclear power reactors across seven sites with a total installed capacity of 8.78 GW.
Construction is underway on 10 additional reactor units with a combined capacity of 8,000 MW, while pre-project activities have begun for another 10 reactors.
India’s nuclear fleet currently comprises Pressurised Heavy Water Reactors (PHWRs), Boiling Water Reactors (BWRs) and Light Water Reactors (LWRs).
Most of India’s operational PHWRs use natural uranium as fuel, producing plutonium as a by-product. The assured supply of Australian uranium is expected to provide a reliable source of fuel for these reactors.
Three-stage nuclear strategy centred on thorium
India’s long-term nuclear strategy focuses on harnessing its abundant thorium reserves, primarily found in the coastal sands of Kerala, Tamil Nadu, Andhra Pradesh and Odisha.
Since naturally occurring thorium cannot directly serve as reactor fuel, it must first be converted into fissile material through neutron absorption inside a nuclear reactor.
To achieve this, India is advancing the development of Fast Breeder Reactors (FBRs) that utilise plutonium while facilitating the transition to thorium-based nuclear power.
A major milestone in this strategy was achieved on April 6, 2026, when India’s indigenously developed 500 MWe Prototype Fast Breeder Reactor (PFBR) at Kalpakkam attained first criticality, marking the beginning of the second stage of India’s three-stage nuclear programme.
Unlike conventional reactors, the PFBR uses plutonium recovered from spent fuel of PHWRs and is designed to produce more nuclear fuel than it consumes. Eventually, it will breed Uranium-233 from thorium, enabling the utilisation of India’s vast thorium reserves for future clean energy generation.
Developed by the Department of Atomic Energy, the PFBR is expected to strengthen India’s fuel security, reduce dependence on imported uranium and contribute to the country’s net-zero emissions target by 2070.
Focus on Small Modular Reactors
The government is also investing in next-generation reactor technologies.
The Union Budget 2025-26 allocated ₹20,000 crore for research, design, development and deployment of indigenous Small Modular Reactors (SMRs).
SMRs generally produce up to 300 MWe of electricity. Their compact and modular design enables factory-based manufacturing, faster construction, improved quality control and phased deployment.
The government aims to operationalise at least five indigenous SMRs by 2033.
Framework for long-term cooperation
India and Australia’s civil nuclear partnership is anchored in the Civil Nuclear Cooperation Agreement, signed in September 2014 and brought into force in November 2015.
The Administrative Arrangement finalised on July 9, 2026, establishes procedures for implementing the agreement while providing a stable long-term framework for cooperation between governments and industry.
Under Australia’s export policy, uranium can only be supplied to countries that have a civil nuclear cooperation agreement in place.
All Australian uranium exported to India will remain under IAEA safeguards, ensuring its exclusive use for peaceful purposes.
The arrangement also marks a significant expansion of bilateral energy cooperation while strengthening the strategic dimension of the India-Australia Comprehensive Strategic Partnership.
Australia also reaffirmed its support for India’s membership of the Nuclear Suppliers Group (NSG).
Significance for India’s energy transition
The government said the Administrative Arrangement would provide multiple long-term benefits for India’s energy sector.
A dependable uranium supply will strengthen fuel security for an expanding fleet of nuclear reactors, providing reliable baseload electricity generation that complements intermittent renewable energy sources such as solar and wind.
Nuclear energy, being a low-carbon source of electricity, will also help increase the share of non-fossil fuel power generation while supporting the growing energy demands of manufacturing, industry, data centres and the digital economy.
The agreement also supports India’s commitment to achieving net-zero emissions by 2070 and meeting its enhanced Nationally Determined Contributions (NDCs) by enabling greater deployment of clean and reliable nuclear power.
The government noted that Australia’s decision to supply uranium reflects international confidence in India’s responsible use of nuclear technology and its strong non-proliferation record.
Strategic partnership gains new momentum
Beyond energy security, the Administrative Arrangement adds another pillar to the India-Australia Comprehensive Strategic Partnership, which already spans trade, defence, critical minerals, technology and cooperation in the Indo-Pacific.
India has signed Inter-Governmental Agreements (IGAs) on civil nuclear cooperation for peaceful purposes with 18 countries, reflecting its expanding international engagement in the nuclear energy sector.
According to the government, the Administrative Arrangement is expected to generate long-term economic benefits by ensuring a stable supply of clean and reliable electricity for manufacturing, digital infrastructure and sustained economic growth.
With the operationalisation of the agreement and milestones such as the PFBR at Kalpakkam entering the next phase of India’s three-stage nuclear programme, the country is strengthening both its fuel security and clean energy capacity. The government said the arrangement provides a dependable foundation for peaceful nuclear cooperation between India and Australia while supporting India’s long-term energy transition and economic development.
