India and Canada Edge Closer to $3 Billion Uranium Deal, Deepening Strategic Energy Ties

India and Canada are close to finalising a landmark uranium supply agreement valued at nearly $3 billion, a move that would significantly strengthen India’s civil nuclear energy programme. The long-term contract, expected to span around a decade, is likely to see Canadian uranium giant Cameco Corp supply fuel for India’s nuclear reactors, supporting both existing facilities and upcoming projects.

The deal comes at a time when India is rapidly expanding its clean and reliable energy infrastructure to meet rising electricity demand. Nuclear power plays a crucial role in this strategy, offering a stable, low-carbon source of baseload energy. A secure and predictable uranium supply is therefore essential to ensure uninterrupted reactor operations and to support India’s ambitious nuclear capacity expansion plans.

Canada India uranium deal, $3 billion uranium pact, Cameco Cigar Lake mine, India nuclear power expansion, 100 GW nuclear target 2047, Mark Carney Narendra Modi meeting, India Energy Week 2026, Canada uranium exports, India energy security, India Canada trade reset, Tim Hodgson uranium comments, Department of Atomic Energy India. Representational image/Pixabay | Firstpost

Canada’s Role as a Reliable Uranium Supplier

Canada is among the world’s leading producers of high-grade uranium, with major reserves located in Saskatchewan. Cameco, one of the world’s largest publicly traded uranium companies, has been a long-standing and trusted supplier to international markets. The proposed agreement would further strengthen Canada’s position as a key partner in India’s nuclear fuel supply chain.

Under earlier arrangements, Canada has already supplied uranium to India following the signing of the Canada–India Nuclear Cooperation Agreement in 2013. That framework marked a turning point, allowing civil nuclear trade between the two countries after decades of restrictions. Since then, uranium imports from Canada have helped India improve reactor utilisation and address earlier fuel constraints.

Strengthening Bilateral Relations After Diplomatic Reset

The progress on the uranium deal also reflects a broader improvement in India–Canada relations following a period of diplomatic strain. Recent high-level engagements between Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney have helped reset ties, creating momentum for deeper cooperation across multiple sectors.

Energy and critical minerals have emerged as central pillars of this renewed partnership. Alongside nuclear cooperation, both countries are working to revive negotiations on a Comprehensive Economic Partnership Agreement, aimed at significantly expanding bilateral trade and investment. The uranium agreement is expected to be one of the most tangible outcomes of this renewed engagement.

Supporting India’s Clean Energy and Climate Goals

India currently operates around 25 nuclear reactors, with several more under construction, and has laid out long-term plans to substantially increase nuclear capacity. As the country seeks to reduce dependence on fossil fuels and meet its climate commitments, nuclear power is viewed as a vital component of a balanced and resilient energy mix.

Beyond fuel supply, the renewed engagement with Canada also opens the door for future collaboration in advanced nuclear technologies, including small modular reactors and other next-generation solutions. Such cooperation could further strengthen India’s technological capabilities while supporting Canada’s efforts to diversify its energy exports.

The MGMM Outlook

India and Canada are moving closer to a major long-term uranium supply agreement valued at nearly $3 billion, a development that would significantly strengthen India’s civil nuclear energy programme. The proposed decade-long deal with Cameco is expected to support both existing reactors and upcoming nuclear projects, ensuring a stable and predictable fuel supply. As India expands its clean and reliable energy infrastructure to meet rising electricity demand, nuclear power remains central to providing low-carbon baseload energy. Securing consistent uranium supplies is critical for improving reactor utilisation, reducing operational risks, and sustaining India’s ambitious nuclear capacity expansion plans.

The agreement also reflects improving India–Canada ties following a recent diplomatic reset, with energy and critical minerals emerging as key pillars of renewed cooperation. Canada’s position as a leading producer of high-grade uranium makes it a strategically important partner for India’s long-term energy security. Alongside nuclear fuel supply, the engagement opens pathways for collaboration in advanced nuclear technologies and broader economic partnerships, including revived trade negotiations. This evolving partnership strengthens India’s clean energy transition while deepening strategic and economic links with a reliable global energy supplier.

(Sources: Firstpost, Economic Times)