New Delhi, March 6: Prime Minister Narendra Modi’s government has signed a significant long-term uranium supply agreement with Canada, valued at $2.6 billion. This deal is viewed as a crucial step in enhancing India’s nuclear energy capabilities. Global analysts believe it will strengthen India’s ambitious target of achieving 100 gigawatts of nuclear energy capacity by 2047.
According to a report from the South China Morning Post, domestic uranium production in India is insufficient to meet future demands. Therefore, securing a long-term import arrangement for uranium has become essential.
Experts cited in the report indicate that domestic uranium production in India is likely to fall short of total demand. This means that India will need to rely on imports to operate its current and future nuclear reactors. Consequently, the long-term supply agreement with Canada is considered strategically vital.
India has been a major importer of uranium from Kazakhstan, the world’s largest uranium producer, in recent years. The new agreement with Canada will open another significant source of this vital fuel, ensuring energy supply for the country’s nuclear reactors.
The report also mentions that in December 2025, India’s Parliament approved changes to its civil nuclear energy framework. For the first time, both domestic and foreign companies are permitted to build, own, and operate nuclear power plants, a sector that was previously under complete government control.
This reform addresses long-standing concerns related to supplier liability and establishes a clearer and more stable regulatory framework. It paves the way for foreign technical partners and private investments, which are deemed essential for India’s nuclear energy expansion.
Analysts suggest that Canada is well-positioned to supply uranium, as several new mining projects are being developed there. This is expected to lead to a steady increase in uranium production in the coming years, providing India with long-term fuel supply assurance.
Prime Minister Modi described the uranium agreement with Canada as a “historic deal.” He stated that both countries will collaborate on small modular reactors, advanced reactors, and the entire nuclear value chain. Canadian leader Mark Carney noted that Canada has the capacity to meet India’s nuclear energy needs and that both nations are initiating a strategic energy partnership.
A joint statement released after the summit confirmed that a commercial agreement worth 2.6 billion Canadian dollars has been established between Canada’s Cameco and India’s Department of Atomic Energy. This agreement will aid in enhancing India’s civil nuclear energy production capacity, achieving clean energy goals, and ensuring long-term energy security.
The joint statement also indicated that both countries agreed to advance the India-Canada strategic energy partnership, focusing on long-term cooperation in clean energy, conventional energy, civil nuclear energy, and critical minerals. This collaboration aims to make energy affordable, sustainable, and conducive to economic growth.
My name is Ganpat Singh Choughan. I am an experienced content writer with 7 years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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