India and Canada signed a $2.6 billion uranium supply deal in the presence of Prime Minister Narendra Modi and his Canadian counterpart Mark Carney in New Delhi on Monday.
Under the agreement, Cameco, a Canada-based company engaged in uranium mining for over 60 years, will supply nearly 22 million pounds of uranium to India for nuclear energy generation from 2027 to 2035.
“We have reached a landmark deal for long-term uranium supply. We will also work together on small modular reactors and advanced reactors,” Prime Minister Modi said in a joint statement after the talks.
The two leaders also agreed to conclude talks on signing a new Comprehensive Economic Partnership Agreement (CEPA) this year. The agreement will be followed by a meeting of chief negotiators in New Delhi and the finalisation and signing of the terms of reference for the CEPA.
In a clear show of renewed warmth in bilateral relations, agreements were signed across sectors ranging from defence and agriculture to AI and clean energy.
Prime Minister Modi said the two countries would work to raise bilateral trade to $50 billion by 2030. However, a statement from the office of the Canadian Prime Minister pegged the 2030 target at $70 billion.
According to the statement from the Canadian Prime Minister’s office, two MoUs were signed to intensify cooperation on critical minerals and energy sources, and to diversify supply chains.
During the joint press statement, Prime Minister Narendra Modi said Canadian pension funds have invested about $100 billion in India, reflecting their confidence in India’s growth story.
Carney’s visit to India is the first by a Canadian Prime Minister since 2018. Relations between the two countries had hit a low under the previous Justin Trudeau government. Both countries had expelled each other’s diplomats in 2024 over India’s concerns about Canada giving shelter to Khalistani extremists.
Carney’s government is actively working to reverse this. “There has been more engagement between the Canadian and Indian governments this year than in any year over the past two decades,” the Canadian Prime Minister’s office said on Monday.
