New Delhi: The India–Canada uranium deal marks a major step in strengthening economic and energy ties between the two countries. India and Canada have signed a $2.6 billion uranium supply agreement along with several cooperation pacts, while also setting an ambitious goal to increase bilateral trade to $50 billion by 2030.
The agreements were finalised during high-level talks between Indian Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney in New Delhi. The deal not only ensures long-term nuclear fuel supply for India but also restarts broader economic cooperation through a proposed Comprehensive Economic Partnership Agreement (CEPA).
Details of India Canada Uranium Deal
India and Canada have signed a 10-year contract worth $2.6 billion for the supply of uranium ore from Canada to India. The uranium will support India’s civil nuclear energy programme, which requires reliable fuel supplies to run nuclear power plants.
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Canada is one of the world’s largest producers of uranium, making it a strategic partner for countries expanding nuclear power generation. The agreement is expected to strengthen India’s clean energy capacity as nuclear power produces electricity without large carbon emissions.
Officials said the deal is part of a broader set of nine agreements signed by both countries during the bilateral meeting.
Critical Minerals Partnership to Strengthen Supply Chains
Along with the uranium agreement, India and Canada also signed a Memorandum of Understanding (MoU) on critical minerals.
This partnership focuses on:
- Joint exploration of critical and strategic minerals
- Investment in mining and processing projects
- Sharing technical knowledge and best practices
- Building resilient supply chains for future industries
Critical minerals such as lithium, cobalt and rare earth elements are essential for electric vehicles, batteries, electronics and renewable energy technologies.
India Canada Uranium Deal & CEPA Trade Pact
India and Canada have also agreed to fast-track negotiations for the Comprehensive Economic Partnership Agreement (CEPA).
The two sides finalised the Terms of Reference (ToR) for the agreement, which will set the framework for negotiations covering:
- Trade in goods and services
- Investment rules
- Market access
- Digital trade and technology cooperation
Both countries aim to complete negotiations by the end of 2026.
CEPA is expected to open new opportunities for businesses, reduce trade barriers and increase investment flows between the two economies.
Target: $50 Billion Bilateral Trade by 2030
Currently, bilateral trade between India and Canada is estimated at around $13 billion annually. Through CEPA and new economic cooperation initiatives, both governments have set a target to increase trade to $50 billion by 2030, almost four times the current level.
The expansion will likely include cooperation in:
- Energy and nuclear technology
- Renewable energy
- Critical minerals
- Advanced manufacturing
- Technology and innovation
Why the India Canada Uranium Deal Is Important
The uranium supply agreement is strategically important for India for several reasons:
1. Energy Security
India’s nuclear power plants require a stable supply of uranium fuel. Import agreements help ensure continuous power generation.
2. Clean Energy Transition
Nuclear power produces electricity with very low carbon emissions, helping India achieve its climate and clean energy goals.
3. Growing Electricity Demand
India’s expanding economy requires more electricity, and nuclear energy is seen as a reliable long-term source.
4. Diversified Supply Sources
Partnering with major uranium exporters like Canada reduces dependence on limited suppliers.
Reset in India–Canada Relations
The agreements are also being seen as a reset in India–Canada relations, which had faced diplomatic tensions in recent years.
By signing multiple cooperation agreements and restarting trade negotiations, both countries are aiming to rebuild economic and strategic engagement across sectors including energy, technology and investment.
