India, Canada Seal $2.6bn Uranium Deal, Push for Trade Pact

India and Canada have agreed to fast-track negotiations toward a comprehensive free trade agreement, with both countries targeting a deal before the end of the year as they seek to reset strained diplomatic ties and deepen economic cooperation.

During his first official visit to New Delhi, Canadian Prime Minister Mark Carney met with Indian Prime Minister Narendra Modi, where both leaders signalled a renewed commitment to strengthening bilateral relations.

Speaking at a joint media appearance, Carney said both nations aim to conclude a free trade pact by year’s end. Modi, in turn, announced an ambitious target to boost bilateral trade to $50 billion by 2030; a sharp increase from nearly $9 billion was recorded in the 2024–25 fiscal year.

India’s Ministry of External Affairs confirmed that both sides have finalized the terms of reference for a Comprehensive Economic Partnership Agreement (CEPA), laying the groundwork for formal negotiations.

Beyond trade, energy cooperation emerged as a major pillar of the renewed partnership. The two countries agreed to a landmark $2.6 billion uranium supply deal to support India’s growing civil nuclear energy program. Under the agreement, Canada will provide long-term uranium supplies to fuel Indian nuclear reactors.

Canadian mining giant Cameco signed the uranium supply agreement with the Indian government, reinforcing Canada’s role as a key partner in India’s clean energy ambitions.

“In civil nuclear energy, we have concluded a landmark deal for the long-term supply of uranium,” Modi said, describing the agreement as a step toward ensuring clean and reliable base-load power.

Both countries also pledged to collaborate on the development of small modular reactors (SMRs) and advanced nuclear reactor technologies, a move seen as aligning with global efforts to transition toward low-carbon energy solutions.

The renewed push for economic cooperation comes after years of diplomatic tensions between New Delhi and Ottawa. Analysts say both governments are now prioritizing economic pragmatism, recognizing the strategic value of stronger trade and energy ties amid shifting global supply chains.

If finalized, the proposed free trade agreement could significantly expand cooperation across sectors, including agriculture, technology, clean energy, mining, education, and services.