India And Canada Sign $2.6 Billion Uranium Supply Deal, Launch Strategic Energy Partnership

Canada and India today announced a sweeping reset of bilateral relations, with Prime Ministers Mark Carney and Narendra Modi unveiling five memorandums of understanding worth $5.5 billion and a commitment to finalise a comprehensive free trade agreement by year's end. The announcements, made following talks at Hyderabad House in New Delhi, mark the most significant diplomatic breakthrough since relations collapsed in 2023 over allegations of Indian interference in Canada.

The centrepiece of the agreements is a $2.6 billion uranium supply deal between the Indian government and Saskatchewan-based Cameco, which will deliver nearly 22 million pounds of uranium for nuclear power generation from 2027 to 2035. The deal represents a tenfold increase from the previous arrangement and will support India's ambition to triple its nuclear capacity by 2032. Additional commercial agreements include a $155 million investment by Indian pharmaceuticals firm Jubilant Pharmova in Quebec and HCL Technologies' pledge to expand its Canadian workforce by 75 per cent by 2030.

Both nations launched a Strategic Energy Partnership spanning liquefied natural gas, critical minerals, solar and hydrogen cooperation. Canada and India signed memorandums covering critical minerals development and energy collaboration, with Carney noting that India's energy demand is projected to double by 2040. The two countries also formalised cooperation between the Canadian Space Agency and Indian Space Research Organisation on Earth observation and quantum technologies.

The leaders confirmed their intention to conclude a Comprehensive Economic Partnership Agreement this year, following finalisation of the terms of reference for negotiations. The trade deal aims to more than double bilateral commerce to $70 billion by 2030, up from $30.8 billion in 2024. Modi credited Carney for the "growing momentum in every area of cooperation," whilst the Canadian prime minister described the partnership as offering "generational opportunities" for workers in both nations.

Foreign Affairs Minister Anita Anand had earlier in Mumbai announced a Canada-India strategy on talent and innovation, including 13 new university partnerships in artificial intelligence, hydrogen research and health sciences. The countries also agreed to establish a defence dialogue and to advance bilateral cooperation on security and law enforcement, with both sides committing to combat transnational organised crime and illegal drugs trafficking. Carney extended an invitation to Modi to visit Canada, building on their previous meetings at the G7 and G20 summits in 2025.

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