Why Canada Is Supplying Uranium Worth Twenty Three Thousand Crore To India Under Long Term Pact

New Delhi: India and Canada are nearing finalisation of a long-term uranium supply agreement estimated at $2.8 billion, approximately Rs.23,400 crore. Under this deal, Canada will supply uranium to India over a span of nearly ten years. The supply will be executed through Cameco Inc, a Canadian company based in Saskatchewan. Both nations reaffirmed their commitment to strengthen civil nuclear cooperation. The initiative is considered an important step toward energy security. Discussions have been progressing positively. Officials indicate that the agreement is close to conclusion.

How Did The Discussion Begin?

Prime Minister Narendra Modi met Canadian Prime Minister Mark Carney during the G20 summit in Johannesburg. Following their meeting, India’s Ministry of External Affairs confirmed that both countries agreed to expand nuclear partnership. The focus is on sustainable and long-term uranium supply. This reinforces mutual trust developed since earlier collaborations. The meeting highlighted the strategic importance of such energy cooperation. Leaders acknowledged the relevance of nuclear energy for development. The dialogue added momentum to ongoing negotiations.

What Is The Background Of Previous Deals?

Cameco had an earlier agreement with India’s Department of Atomic Energy, which expired in 2020. The initial deal was signed in 2015 during Prime Minister Modi’s visit to Canada and was implemented through Prime Minister Stephen Harper. India was allowed to purchase uranium for electricity generation after the 2013 nuclear cooperation agreement between both nations took effect. That agreement marked a breakthrough. It enabled India to diversify nuclear fuel sources. The new deal aims to build upon that foundation.

How Does Small Modular Reactor Technology Factor In?

India has shown growing interest in Small Modular Reactor or SMR technology. Negotiations also involve potential cooperation in developing such advanced systems. SMRs are considered cost-effective and efficient for future energy demands. Experts believe India may benefit by accessing Canadian expertise. The partnership aligns with global shifts towards cleaner alternatives. Authorities indicate technological collaboration could extend beyond fuel supply alone. This signals a forward-looking approach. The deal may help India modernise nuclear capabilities.

What Is The Role Of ACITI Partnership?

The uranium supply discussions are also linked to the Australia-Canada-India Technology and Innovation partnership, known as ACITI. The initiative was announced after a trilateral meeting between Narendra Modi, Mark Carney and Australian Prime Minister Anthony Albanese in Johannesburg. ACITI aims to deepen cooperation across emerging technologies, clean energy transition, supply chains and artificial intelligence. Prime Minister Modi posted that the initiative will strengthen collaboration across three continents and three oceans. The uranium pact aligns with this strategic vision. It reinforces cooperation at multiple levels.

How Will This Impact Bilateral Trade?

Bilateral trade between India and Canada was valued at $22.6 billion in 2024. Canada aims to increase this to $70 billion by 2030. The uranium agreement is expected to accelerate economic ties. Energy security could drive further industrial cooperation. Strategic partnerships in technology, infrastructure and sustainability are likely to expand. Officials believe mutual trust will enhance future policies. The progress of this deal signals deeper long-term engagement. It may open the door to fresh investment opportunities.

What Is The Overall Significance Of The Deal?

The upcoming agreement is seen as a major stride toward India’s energy diversification goals. Long-term uranium access will support nuclear power generation and reduce dependence on fossil fuels. Collaboration with Canada ensures reliable supply. The deal also strengthens geopolitical relations. With added interest in SMR technology, India could advance its nuclear infrastructure. Experts view this as a strategic milestone. Both countries believe the partnership will promote sustainable progress and energy resilience.