Canada and India are moving closer than ever to sealing a landmark uranium supply agreement estimated at $2.8 billion, a deal that could reshape energy cooperation between the two countries and support India’s growing ambitions in the nuclear power sector. According to early reports emerging from diplomatic and industry circles, the proposed contract would enable Canada to export uranium to India for a 10-year period, ensuring long-term stability in nuclear fuel supply for one of the world’s fastest-expanding clean-energy markets.

The development comes at a time when India is accelerating its nuclear energy programme to meet rising electricity demand, reduce carbon emissions, and diversify its power mix beyond coal. Nuclear power currently accounts for a modest share of India’s electricity generation, but policymakers aim to scale it significantly in coming decades. A steady, internationally sourced supply of uranium is therefore indispensable—and Canada, with its rich reserves and established mining industry, has long been considered a reliable partner.

The reported deal represents more than just a major commercial exchange; it reflects the strategic re-alignment of Indo-Canadian ties after periods of political turbulence. Energy trade—particularly in the nuclear domain—has historically served as a stabilising pillar in the bilateral relationship. The potential long-term uranium agreement underscores the recognition in both capitals that pragmatic cooperation is mutually beneficial and essential for future economic and strategic goals.

India’s Expanding Nuclear Energy Demand

India’s nuclear energy sector is undergoing a phase of renewed investment, driven by both domestic priorities and global sustainability commitments. With electricity demand rising at one of the fastest rates in the world and pressure to cut emissions growing, the government has been actively expanding nuclear capacity.

The country currently operates several reactors across different states, with multiple projects under construction or planned for the near future. The long-term roadmap envisions a significant increase in both indigenous and imported reactors, including advanced pressurised heavy water reactors and collaborations with international partners. To sustain and scale nuclear energy output, uranium supply must remain stable, affordable, and predictable.

Domestic uranium production is insufficient to meet the entire demand, making imports essential. India has therefore diversified its uranium sourcing over the years—procuring from countries such as Kazakhstan, Russia, Australia, and Canada. A long-term deal with Canada would add another anchor supplier, strengthening India’s energy security.

Canada’s Role as a Major Uranium Producer

Canada is among the world's leading producers and exporters of uranium, boasting high-grade deposits and advanced extraction technologies. Canadian uranium is valued not only for its quality but also for the regulatory oversight, transparency, and reliability of suppliers within the country.

A deal of this magnitude—worth around $2.8 billion over a decade—would reaffirm Canada’s relevance in the global nuclear fuel market. It would also support the Canadian mining sector, which has been seeking to expand international partnerships amid evolving global energy trends.

For Ottawa, deepening energy trade with India aligns with broader economic diversification goals. India represents one of the largest and fastest-growing energy markets globally, and strengthening long-term contracts in critical sectors such as nuclear fuel opens new economic opportunities for Canadian companies.

Reviving Strategic Energy Ties

The proposed uranium agreement gains additional significance in the context of fluctuating diplomatic engagements between the two countries in recent years. Despite occasional political tensions, energy cooperation has historically remained insulated and viewed as a domain where mutual trust and long-term benefits outweigh short-term differences.

The nuclear cooperation agreement established between India and Canada earlier created the foundation for such deals, allowing civil nuclear trade and collaboration under international safeguards. The new potential contract indicates that both nations recognise the importance of continuity in strategic economic partnerships, especially in sectors crucial to national development.

The timing is also notable, as India continues to emerge as a key economic and geopolitical actor in the Indo-Pacific region, while Canada pursues strategies to enhance its presence in Asian markets. Energy cooperation—particularly in uranium supply—offers a platform for stable engagement even as political conditions fluctuate.

Join our Telegram Channel for Latest News and Regular Updates.

Start your Mutual Fund Journey  by Opening Free Account in Asset Plus.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.