New Delhi, March 6 The Narendra Modi government’s sealing of the $2.6 billion deal for the long-term supply of uranium from Canada is seen by global analysts as a crucial step in India’s ambitious push for achieving 100 gigawatts of nuclear capacity by 2047.
India’s domestic production is expected to fall short of projected needs, making long-term import arrangements essential, according to a report in South China Morning Post.
The report cites experts as saying that India’s domestic uranium production is likely to be well below total demand, implying continued and growing reliance on imports to fuel both existing and future reactors. Considering this gap, a long-dated Canada-India supply agreement would be strategically important.
Kazakhstan, the world’s largest uranium producer, has been India’s primary supplier in recent years, the Canada deal will now open up another sources for this vital fuel to power the country’s nuclear reactors.
The report also points out that India’s Parliament approved an overhaul of the country’s civilian nuclear energy framework in December 2025, allowing domestic and foreign companies to build, own and operate nuclear power plants for the first time – dismantling a state monopoly.
The reform removed long-standing supplier liability concerns and established a more predictable regulatory environment, clearing the way for the foreign technology partners and private capital that India’s expansion will require.
Canada is well placed to deliver the uranium as a string of new mining projects already in development means the country’s uranium output is set to grow well into the future, giving Delhi confidence that the agreement will deliver fuel in he long run, the article cites an analyst as saying.
PM Modi termed the agreement on uranium with Canada as a “landmark deal” and said the two countries would work together on small modular reactors, advanced reactors and “the nuclear value chain”. Carney said Canada had the capability to contribute to India’s nuclear energy needs and confirmed the two sides were launching a strategic energy partnership.
The two leaders welcomed the conclusion of a CAD $2.6 billion commercial agreement between Cameco and the Department of Atomic Energy for the long-term supply of uranium, contributing to India’s civil nuclear energy generation, clean energy transition objectives, and long-term energy security, according to a joint statement issued after the summit.
Recognising their complementary strengths as energy powers, the leaders agreed to advance the India-Canada Strategic Energy Partnership aimed at deepening long-term cooperation across the energy value chain. They underscored the shared commitment to enhancing collaboration across clean energy, conventional energy, civil nuclear energy, and critical minerals to promote affordability, sustainability, and economic growth, according to a joint statement issued after the summit.
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