Canada and India are finalising a major long-term uranium supply agreement, signalling a significant warming of bilateral ties after a two-year diplomatic freeze.
According to the Canadian newspaper, The Globe and Mail, the proposed export pact is valued at about $2.8 billion (close to Rs 25,000 crore), with a possible 10-year term. Certain commercial terms may still be tweaked before a public announcement.
The deal is being viewed as part of a wider revival in civil nuclear co-operation between Ottawa and New Delhi, which had slowed following diplomatic tensions since 2023.
The development follows the meeting between Canadian Prime Minister Mark Carney and Indian Prime Minister Narendra Modi at the G20 meeting in Johannesburg, where both leaders agreed to revive stalled talks on a comprehensive economic partnership agreement. Trade negotiations had been paused for two years amid heightened political tensions.
An official release from the Indian government noted that both sides reaffirmed their “longstanding civil nuclear co-operation” and acknowledged ongoing discussions on long-term uranium supply.
This would be the second major uranium agreement between the countries. In 2015, India signed a five-year pact to import Cameco uranium valued at around $350 million at then-prevailing prices. The new accord is expected to be a fresh agreement rather than a renewal of the earlier deal.
India currently operates around 25 nuclear reactors with six more under construction, according to the World Nuclear Association. Many of these units are pressurised heavy-water reactors based on the Canadian Candu design. A deeper partnership could extend beyond fuel supply to include Canada’s efforts to commercialise small modular reactors (SMRs).
Canada had originally banned uranium and nuclear hardware exports to India in the 1970s after Indian scientists used Canadian-supplied technology to advance their nuclear weapons programme.
This changed with the 2013 Canada–India Nuclear Co-operation Agreement, which ensured that all nuclear material transferred is used solely for peaceful purposes and is subject to International Atomic Energy Agency safeguards.
Relations deteriorated sharply in September 2023 when then prime minister Justin Trudeau alleged Indian involvement in the killing of Sikh activist Hardeep Singh Nijjar in British Columbia — a claim New Delhi rejected. The diplomatic standoff halted trade talks launched in 2022.
Carney’s government, looking to diversify Canada’s trade beyond the United States under President Donald Trump, has signalled a desire to move forward despite the lingering political sensitivities. Canadian authorities continue to investigate alleged transnational repression involving Sikh activists, with four Indian nationals charged in connection with the Nijjar case.
Despite rapid growth in India’s economy, bilateral trade remains relatively small: in 2024, Canada exported $5.3 billion worth of goods to India and imported $8 billion. By contrast, Canada exported nearly $600 billion in goods to the US and about $30 billion to China.