Nuclear fusion in India: The next clean energy frontier for startups

The global clean energy landscape may not be too far from a revolutionary transformation in the form of nuclear fusion. From the NIF’s landmark net energy gain demonstration in December 2022 to Google’s purchase agreement with Commonwealth Fusion Systems this year, optimism is growing that breakthroughs will now come faster and translate to a commercial nuclear fusion reactor as early as within the next 10–15 years.

In India, as we grapple with massive energy demands and our ambition to hit net zero by 2070, fusion represents not just an energy solution but a tremendous entrepreneurial opportunity. The convergence of India's robust nuclear infrastructure, world-class engineering capabilities, and a growing startup ecosystem creates an unprecedented opportunity for startup founders to shape the future of potentially limitless clean energy.

India's nuclear fission energy program provides a solid foundation for fusion entrepreneurs. With 25 nuclear reactors currently operational, generating 8,880 MW of electricity, India has demonstrated significant expertise in the development and deployment of nuclear technology.

The country's installed nuclear capacity has doubled since 2014, from 4,780 MW to 8,880 MW, showcasing rapid growth and technical know-how. This existing infrastructure creates a skilled workforce, established supply chains, and regulatory frameworks that can be adapted for fusion technologies.

The Department of Atomic Energy (DAE), Nuclear Power Corporation of India (NPCIL), and major engineering companies like Larsen & Toubro and Inox India have accumulated decades of experience in complex nuclear systems.

These organizations have already proven their capabilities on the global stage through India's substantial contributions to the International Thermonuclear Experimental Reactor (ITER) project, where Indian companies are delivering critical components, including the cryostat, in-wall shielding, cooling water systems, and cryogenic systems.

Participating in ITER since 2005, India has made significant contributions, positioning itself as an important player in international fusion research. The project has enabled Indian companies to develop advanced manufacturing capabilities and trained a skilled workforce in fusion-specific technologies. This experience provides Indian entrepreneurs with valuable insights into the challenges and opportunities of fusion that few other nations possess.

Promising startups

The Indian fusion startup landscape is still in its infancy, but a small number of startups are emerging, including Anubal Fusion, Pranos, and Hylenr,

Hyderabad-based Anubal Fusion has already secured pre-seed funding – an investment we are proud to have led. 

Bengaluru-based Pranos, the founders, have an outsized ambition of developing 2,500 modular fusion reactors capable of powering a billion Indian households, and Hylenr has received patents for its low-energy reactor technology.

These early-stage companies are exploring different technological approaches to fusion, from tokamak designs to alternative reactor concepts, reflecting the potential for innovation to emerge from India's startup ecosystem. Given India's massive needs, these startups are also considering scale from the outset.

The Union Budget 2025-26's announcement of a Rs. 20,000 crore Nuclear Energy Mission, specifically focused on Small Modular Reactors (SMRs), signals unprecedented government support for nuclear innovation. This initiative aims to develop at least five indigenously designed SMRs by 2033, opening up opportunities for startups to participate in a high-value, innovation-driven industry.

 Global markets

 The global fusion industry is seeing significant growth, with private investment reaching $2.64 billion in the 12 months leading to July 2025—a 178 per cent increase from the previous year. Total funding for fusion companies now exceeds $9.76 billion, representing a fivefold increase since 2021.

 While public funding still represents the biggest chunk of investments, this increase reflects growing confidence among private investors as well in fusion's commercial viability. This could potentially create opportunities for Indian startups to access global capital and establish international partnerships.

 Leading companies, such as the MIT spinoff Commonwealth Fusion Systems (CFS), are setting aggressive timelines. CFS’s SPARC demonstration reactor, for example, is expected to achieve net energy gain as early as next year, and its first commercial plant, ARC, is planned for the early 2030s.

 Google's recent 200 MW power purchase agreement with CFS marks the first corporate offtake agreement for fusion energy, demonstrating commercial demand for fusion electricity. The France-based ITER project is facing delays and price increases. Still, its work continues to focus on beginning deuterium-tritium operations by 2039, potentially producing 500 MW of fusion power.

 The industry consensus suggests commercial fusion electricity will be available by 2035, with the majority of fusion companies targeting the end of the 2030s for grid-scale deployment.

 These private-public milestones represent a roadmap for commercial fusion deployment, with a timeline that Indian entrepreneurs can stay abreast of and contribute solutions across the fusion value chain.

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Fusion value chain

The fusion industry has generated numerous opportunities across the entire value chain, from fundamental research to commercial deployment. Materials science, for example, represents one of the most critical areas where startups can develop plasma-facing materials capable of withstanding extreme heat fluxes and neutron bombardment.

 Current tungsten-based solutions, also designated for projects such as ITER, face significant challenges, creating opportunities for innovative materials solutions.

 Superconducting magnets are another area that offers substantial commercial potential, with companies like CFS, for example, demonstrating 20 Tesla magnets that enable smaller, more efficient fusion systems. The superconducting magnets market is projected to reach $4.36 billion by 2035, with fusion applications driving significant growth.

 Tritium production and fuel cycle management offer specialised opportunities for companies with expertise in nuclear fuel handling and processing. The development of efficient tritium breeding blankets and fuel recycling systems will be crucial for the commercial deployment of fusion.

 In the realm of software, artificial intelligence and plasma control systems present a rapidly growing opportunity, exemplified by companies such as Luxembourg-based Next Step Fusion and researchers from Princeton University who are demonstrating AI systems capable of real-time plasma stabilisation.

 For Indian startups in each of these areas, there are numerous opportunities, ranging from leveraging the country's existing materials science capabilities to develop next-generation This involves superconducting materials and manufacturing processes, as well as developing advanced control systems, predictive algorithms, and optimisation tools for fusion reactors.

 The extended fusion supply chain is also a significant and growing opportunity, with spending expected to increase from $500 million in 2022 to over $7 billion by the time the first commercial plants are deployed. Precision manufacturing, advanced materials, power electronics, cryogenic systems, and specialised components are all part of this.

 Indian companies, such as Larsen & Toubro, have already demonstrated their capabilities in this space through their contributions to ITER.

As the supply chain expands, numerous opportunities will emerge for component suppliers and specialised service providers.

 The path to commercial fusion involves important technical milestones, the most significant being the demonstration of net energy gain on a sustained basis – achieving a criterion that scientists call the ‘Triple Product’. Multiple companies expect this to happen before the end of the decade, which will trigger increased investment and accelerated development programs.

 India’s advantages

 India offers some advantages for fusion entrepreneurship. The country's large domestic energy market presents a natural demand for fusion technologies, while competitive manufacturing costs enable the production of cost-effective components. India's robust engineering education system and burgeoning venture capital ecosystem offer the human capital and financial resources required for deep-tech startups.

 The government's commitment to achieving 100 GW of nuclear capacity by 2047 creates policy alignment and potential domestic market opportunities. Recent legislative changes allowing private sector participation in nuclear projects further enhance the business environment for fusion startups.

 In conclusion, nuclear fusion represents a transformational opportunity for Indian entrepreneurs, combining the promise of limitless clean energy with substantial commercial potential. India's strong nuclear foundation, emerging fusion startup ecosystem, and competitive advantages position the country to become a major player in the global fusion economy.

 With global investment likely to only increase and commercial deployment timelines accelerating, the window is open for Indian entrepreneurs to establish themselves. The next decade will be critical for startups to develop technologies, build capabilities, and establish market positions in what could become the most significant energy technology of the century, perhaps even of history.

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