India and Canada are reportedly close to finalising a long-term uranium export agreement worth US$ 2.8 billion (₹24,982 crore) — a deal that could significantly strengthen India’s civil nuclear energy programme. This development comes at a time when both nations are seeking to revitalise economic and strategic ties, marking a fresh chapter in bilateral cooperation.
A Renewed Push in Nuclear Partnership
India and Canada on the Brink of a Major US$2According to reports, the upcoming agreement could span 10 years, with Canada’s Cameco Corporation supplying uranium to fuel India’s growing nuclear power needs. This arrangement builds upon earlier frameworks established under the 2013 Canada–India Nuclear Cooperation Agreement, which paved the way for safe and peaceful nuclear collaboration.
This will not be a mere extension of earlier contracts but a new, standalone agreement — reflecting stronger intent and maturing trust between the two countries.
India had previously received uranium from Cameco under a five-year deal in 2015, valued at US$ 350 million (₹3,123 crore). The proposed 2025 deal is nearly eight times larger, highlighting India’s expanding appetite for clean and reliable nuclear energy.
India’s Growing Nuclear Infrastructure
India’s civil nuclear programme continues to expand rapidly:
- 25 nuclear reactors are currently operational.
- 6 additional reactors are under construction.
- Many of these reactors are based on Canadian CANDU-derived PHWR designs — a testament to historical technological ties.
The new uranium deal could also open doors for future collaboration in small modular reactors (SMRs), a next-generation technology promising cleaner, safer, and more flexible nuclear solutions.
Bilateral Trade on the Rise
The uranium agreement aligns with broader efforts to revitalise India–Canada trade relations. Both nations have agreed to restart stalled negotiations for a Comprehensive Economic Partnership Agreement (CEPA).
Bilateral trade reached US$ 21.98 billion (₹1,96,106 crore) in 2024, reflecting stable commercial momentum despite previous diplomatic hurdles.
Why This Deal Matters
This potential uranium supply contract is more than just a commercial agreement — it represents:
- India’s focus on long-term energy security
- Canada’s renewed interest in strategic cooperation
- A boost for clean energy and climate commitments
- Strengthened geopolitical ties between the two democracies
As global energy demands shift and clean power becomes essential, this partnership may become a defining cornerstone in India’s nuclear journey.
SOURCE:IBEF
