New Delhi, March 3, 2026 — Canada and India have taken a major step to deepen economic and energy cooperation by signing a **long-term uranium supply agreement worth approximately $2.6 billion (Canadian dollars). The pact was inked during the official visit of Canadian Prime Minister Mark Carney to New Delhi, where he met Indian Prime Minister Narendra Modi. The deal aims to secure a stable and reliable source of nuclear fuel for India’s expanding civil nuclear energy programme.
Details of the Uranium Supply Agreement
Under the agreement, Cameco Corporation, Canada’s largest uranium producer, will supply nearly 22 million pounds of uranium ore concentrate to India’s Department of Atomic Energy over a nine-year period from 2027 through 2035. Deliveries will be made on market-related price terms to support India’s fleet of nuclear reactors and future capacity expansion plans.
India currently operates 24 nuclear reactors and has ambitious goals to increase its nuclear generating capacity to 100 GW by 2047, aligning with its broader clean energy and energy security objectives.
Strategic and Economic Context
The uranium deal is part of a wider strategic partnership between Canada and India that extends beyond fuel supply to include cooperation in critical minerals, renewable energy, and technology sectors. This collaboration is expected to reinforce both countries’ economic linkages and open new avenues for mutual investment and innovation.
Officials from both nations also agreed to accelerate negotiations on a Comprehensive Economic Partnership Agreement (CEPA) aimed at significantly boosting bilateral trade. The target is to increase trade from current levels to around $50 billion annually by 2030 if the pact is finalized.
Reviving Ties After Diplomatic Strains
The uranium deal marks a renewed chapter in India-Canada relations, which faced diplomatic tensions in recent years. The agreement underscores a pragmatic shift towards stronger economic and energy collaboration, demonstrating both countries’ commitment to stable, long-term partnerships despite earlier geopolitical strains.
Nuclear Energy and Global Significance
For India, securing long-term uranium supply is crucial for sustaining its civil nuclear energy expansion, which plays a key role in the nation’s strategy to reduce carbon emissions and meet growing power demands. For Canada, the deal opens up a reliable and expanding export market and strengthens its position in the global nuclear fuel supply chain.
The $2.6 billion uranium supply agreement represents a significant strategic tie between Canada and India, securing nuclear fuel for India’s future and supporting broader economic and trade cooperation under a prospective CEPA framework.