India’s Nuclear Energy Push Gets Boost with Uranium Supply Deal with Canada

New Delhi- The government led by Narendra Modi has finalised a $2.6 billion agreement with Canada for the long-term supply of uranium, a move that analysts believe will significantly support India’s goal of achieving 100 gigawatts of nuclear power capacity by 2047.

According to a report by the South China Morning Post, India’s domestic uranium production is expected to remain insufficient to meet the growing demand from both existing and upcoming nuclear reactors. As a result, long-term import agreements are becoming increasingly crucial for sustaining the country’s nuclear energy expansion.

Experts cited in the report noted that India will likely continue to rely heavily on uranium imports, as domestic output is projected to fall well short of overall demand. In this context, a long-term supply arrangement with Canada is considered strategically important.

Until now, Kazakhstan, the world’s largest uranium producer, has been India’s primary supplier. The new agreement with Canada will diversify India’s sources of uranium, strengthening fuel security for its nuclear power programme.

The report also highlighted that India’s Parliament approved significant reforms to the country’s civilian nuclear energy framework in December 2025. The changes allow both domestic and foreign companies to build, own and operate nuclear power plants for the first time, effectively ending the long-standing state monopoly in the sector.

These reforms also addressed supplier liability concerns and created a more stable regulatory environment, paving the way for foreign technology partnerships and private investments needed for India’s nuclear expansion.

Canada is well positioned to meet India’s uranium requirements, as several new mining projects currently under development are expected to increase the country’s uranium output in the coming years, the report said.

Prime Minister Narendra Modi described the uranium agreement with Canada as a “landmark deal”, noting that the two nations will collaborate on small modular reactors, advanced reactor technologies, and other elements of the nuclear value chain. Canadian Prime Minister Mark Carney also emphasised Canada’s capability to support India’s growing nuclear energy needs and confirmed the launch of a strategic energy partnership between the two countries.

The leaders welcomed the completion of a CAD $2.6 billion commercial agreement between Cameco and India’s Department of Atomic Energy for the long-term supply of uranium. The deal is expected to support India’s civil nuclear energy generation, strengthen its clean energy transition and enhance long-term energy security.

Recognising their complementary strengths as energy powers, both sides agreed to advance the India–Canada Strategic Energy Partnership, aimed at deepening cooperation across the entire energy value chain. The partnership will focus on collaboration in clean energy, conventional energy, civil nuclear energy and critical minerals to promote affordability, sustainability and economic growth.

With inputs from IANS