The $2.6 billion long-term uranium supply agreement between India and Canada is being seen as a major step toward strengthening India’s nuclear energy capacity. Analysts say the deal will support India’s ambitious plan to achieve 100 gigawatts of nuclear power capacity by 2047.
According to a report by the South China Morning Post, India’s domestic uranium production is unlikely to meet the country’s future nuclear fuel requirements. As a result, securing long-term uranium imports has become essential for sustaining and expanding India’s nuclear energy programme.
Strategic Importance of Uranium Imports
Experts quoted in the report noted that India’s uranium production remains significantly lower than its overall demand. This means the country will continue to rely on imports to fuel both existing and upcoming nuclear reactors.
In this context, the long-term uranium supply agreement with Canada is considered strategically important for ensuring stable fuel supplies for India’s nuclear power plants.
India has already been importing uranium from Kazakhstan, one of the world’s largest uranium producers. The new deal with Canada will open another major source of nuclear fuel for the country.
Nuclear Sector Reforms in India
The report also highlighted that in December 2025, the Indian Parliament approved reforms in the civil nuclear energy framework. These reforms allow domestic and foreign companies to build, own and operate nuclear power plants in India for the first time.
Previously, the nuclear power sector in India was fully controlled by the government. The reforms are expected to address long-standing concerns related to supplier liability and create a more stable regulatory framework.
Experts believe these changes will attract foreign technology partners and private investment, both of which are crucial for expanding India’s nuclear power capacity.
Canada’s Growing Uranium Production
Analysts say Canada is well positioned to supply uranium to India as several new uranium mining projects are being developed in the country. These projects are expected to increase Canada’s uranium output in the coming years, ensuring a reliable long-term fuel supply.
Prime Minister Narendra Modi described the agreement as a “historic deal”, saying India and Canada will also collaborate on small modular reactors, advanced reactor technologies and the broader nuclear value chain.
Canadian leader Mark Carney said Canada has the capability to support India’s growing nuclear energy needs and that the two countries are launching a strategic energy partnership.
Commercial Agreement Between Cameco and India
According to the joint statement issued after the summit meeting, a commercial agreement worth 2.6 billion Canadian dollars has been signed between Canadian uranium producer Cameco and India’s Department of Atomic Energy.
The agreement is expected to strengthen India’s civil nuclear power generation capacity, help achieve clean energy goals, and ensure long-term energy security.
Both countries also agreed to deepen cooperation in clean energy, conventional energy, civil nuclear energy and critical minerals, aiming to promote affordable, sustainable energy and support economic growth.
