India and Canada have taken a major step to strengthen their economic partnership by signing a $2.6 billion uranium supply agreement and setting an ambitious target to significantly expand bilateral trade in the coming years.
Under the deal, Canadian uranium major Cameco will supply uranium ore to India for use in its civilian nuclear power plants. The long-term arrangement is expected to support India’s expanding nuclear energy programme and help ensure a stable supply of fuel for electricity generation. For India, which is looking to increase the share of clean energy in its power mix, reliable uranium supplies are critical.
The agreement was finalised during high-level discussions between Prime Minister Narendra Modi and his Canadian counterpart Mark Carney. Both leaders emphasised the importance of energy security and stronger economic cooperation between the two countries.
Beyond uranium, the two sides also signed pacts to collaborate in the exploration and development of critical minerals — key raw materials required for electric vehicles, renewable energy systems and advanced technologies. With global supply chains under strain, both countries see value in working together to secure access to these strategic resources.
In a further boost to ties, India and Canada agreed to accelerate negotiations on a Comprehensive Economic Partnership Agreement (CEPA), effectively reviving talks on a long-pending free trade agreement. They have set a goal of increasing two-way trade to $50 billion by 2030, a sharp rise from current levels.
Officials said deeper trade and investment flows could create fresh opportunities for businesses and generate jobs in both countries. The new agreements are being seen as a reset in India-Canada relations, with a clear focus on energy cooperation, supply chain resilience and long-term economic growth.
