Canada and India Seal Major Uranium Agreement During Diplomatic Reset Visit
Canadian Prime Minister Mark Carney and Indian Prime Minister Narendra Modi have signed a landmark 10-year uranium supply agreement during a historic meeting in Delhi, signalling a definitive thaw in previously strained diplomatic relations between the two nations. The deal, valued at $1.9 billion, was announced on Monday 2 March 2026 as part of a broader push to reset ties following a challenging period of expulsions and stalled negotiations.
A New Era of Partnership Declared
Prime Minister Carney described his visit to India as "a new era of partnership" while delivering a joint statement alongside Prime Minister Modi. "This visit marks the end of a challenging period and, more importantly, the beginning of a new, more ambitious partnership between two confident and complementary nations," Carney stated emphatically. The two leaders announced a host of additional agreements spanning energy, trade, and education sectors, with Carney confirming that both countries are advancing towards a comprehensive Canada-India Economic Partnership Agreement, aiming for conclusion by the end of 2026.
Background of Diplomatic Strain
Relations between Canada and India deteriorated sharply during 2023–24 following allegations by the previous Canadian government that Indian agents were involved in the assassination of Sikh separatist Hardeep Singh Nijjar in British Columbia. This led to reciprocal expulsions of top diplomats and brought trade talks to a standstill. However, both sides have now moved decisively to repair the damage, with officials earlier signalling that India was "no longer" considered a threat by Canadian authorities.
Details of the Uranium Agreement
The uranium supply deal involves Canadian company Cameco, a Saskatchewan-based producer and one of the world's largest publicly traded uranium companies. Canada, as the world's second-largest uranium producer accounting for approximately 13–15 percent of global output, will secure long-term uranium supplies for India's rapidly expanding nuclear sector through this agreement. This forms part of a wider energy cooperation framework that also includes oil, gas, and critical minerals.
India's Nuclear Expansion Ambitions
The agreement comes as India accelerates plans to make nuclear power a central pillar of its energy security strategy. Currently, nuclear energy accounts for just over three percent of India's electricity generation, with 22 reactors providing an installed capacity of 6,780 megawatts. The country aims to increase this to 22,480 MW by 2031, with even more ambitious long-term plans targeting 100 gigawatts by 2047.
In December 2025, India introduced groundbreaking legislation to open its nuclear sector to private investment for the first time, allowing government-selected firms to build and operate plants. This forms part of a comprehensive plan to make atomic energy central to India's clean energy transition and would permit private companies to import and process uranium.
Addressing India's Energy Demands
India's limited domestic uranium production—approximately 600 tonnes annually against projected reactor demand exceeding 1,800 tonnes as capacity expands—makes long-term import agreements increasingly crucial. Much of India's domestic reserves are low-grade, and the addition of more light water reactors will further increase reliance on imported fuel.
India's electricity demand is projected to grow by about two-thirds by 2030 compared to 2024 levels, as the world's fastest-growing major economy expands its industrial base. Indian High Commissioner to Canada Dinesh Patnaik emphasized the country's appetite for energy imports, stating ahead of Carney's meeting: "On energy, there is an appetite which even Canada cannot fulfil and we are willing to buy whatever Canada is offering on crude, on LPG, on LNG. We are willing to take whatever. Nuclear is a huge field in which we want to work together."
Strategic Implications for Both Nations
For India, which imports the vast majority of its oil and gas, securing dependable long-term fuel supplies has become increasingly urgent amid global trade volatility. The country faces tensions with the United States over Russian oil purchases, ongoing conflict in the Middle East, and potential disruptions to the Strait of Hormuz—all factors that have rattled energy markets worldwide.
For Canada, the agreement reinforces Prime Minister Carney's ambition to position the country as a reliable energy supplier to Asian markets beyond the United States. The US has historically accounted for the overwhelming majority of Canadian crude exports, but US-Canada relations have been under increasing strain in recent months, with President Donald Trump's repeated jibes referring to Canada as "the 51st state of the US."
During his visit, Carney wrote on social media platform X: "Team Canada is here on a mission. Premiers, ministers and I were in Mumbai working to double our trade with India, secure energy partnerships, and attract massive new investment—to build a stronger, more resilient Canadian economy." He has consistently described India as a "natural partner" for Canada in the evolving global landscape.
