India, Canada Seal $2.6 bn Uranium Deal, Resolve to Conclude Mega Trade Pact This Year

India and Canada on Monday inked landmark pacts on supplies of Uranium and critical minerals and vowed to seal a comprehensive economic partnership agreement this year with Prime Minister Narendra Modi and his Canadian counterpart Mark Carney finalising an ambitious roadmap of cooperation to shore up ties including taking bilateral annual trade to over USD 50 billion by 2030.

In their wide-ranging talks, the two leaders also pledged to ramp up cooperation in defence, critical technologies, small and modular nuclear reactors, education, artificial intelligence and renewable energy, demonstrating that the relationship has moved beyond turbulence into a more stable and forward-looking phase.

The ties between the two countries hit rock bottom following then-PM Justin Trudeau's allegations in 2023 of a potential Indian link to the killing of Khalistani terrorist Hardeep Singh Nijjar in Canada.

The two sides initiated a series of measures to rebuild the relations after Carney became the prime minister in March last year.

To leverage their strengths as complementary economies, India and Canada announced a new strategic energy partnership, including in LNG, LPG, uranium, solar and hydrogen.

As the first step, a USD 2.6 billion agreement was signed between the government of India and Saskatoon-based Cameco to supply nearly 22 million pounds of uranium to India for nuclear energy generation from 2027 to 2035.

Besides the pacts on uranium and critical minerals, India and Canada signed six other MoUs, including one on the terms of reference for the India-Canada Comprehensive Economic Partnership Agreement (CEPA).

"Our goal is to reach USD 50 billion in trade by 2030. Unlocking the full potential of economic cooperation is our priority. Therefore, we have decided to finalise the Comprehensive Economic Partnership Agreement soon.

"This will create new investment and employment opportunities in both countries," Modi said in his media statement.

The volume of two-way annual trade at present is around USD 13 billion.

"Canada's pension funds have invested USD 100 billion in India. This symbolises their deep belief in India's growth story," Modi said.

The prime minister said the Memorandum of Understanding (MoU) on critical minerals will strengthen resilient supply chains. Canada is known for its significant reservoir of critical minerals and rare earth materials.

"In the energy sector, we are building a next-generation partnership, which will focus on hydrocarbons as well as renewable energy, green hydrogen and energy storage," Modi said.

"In civil nuclear energy, we have signed a landmark deal for long-term uranium supply. We will also work together on small modular reactors and advanced reactors," he said.

The prime minister said both sides agreed that terrorism, extremism, and radicalisation are common and serious challenges not only for India and Canada but for all humanity. "Our close cooperation against these is crucial for global peace and stability." A Canadian readout said the two leaders agreed to advance bilateral cooperation on security and law enforcement and it includes issues of mutual concern to Canada and India, such as the illegal flow of drugs, particularly fentanyl precursors and transnational organised criminal networks.

Prime Minister Carney also underscored that Canada will continue to take measures to "combat transnational repression", the readout said without elaborating.

Secretary (East) in the external affairs ministry, P Kumaran, said at a media briefing that the process for normalisation of India-Canada ties has already begun translating into "tangible economic outcomes".

"The relationship has clearly moved beyond turbulence into a more stable and forward-looking phase," he said.

Modi and Carney also deliberated on the precarious security situation in West Asia, with PM Modi asserting that India supports the resolution of all conflicts through dialogue and diplomacy.

"The current situation in West Asia is a matter of deep concern for us. India supports the resolution of all disputes through dialogue and diplomacy. We will continue to work with all countries to ensure the safety of all Indian citizens in the region," Modi said.

The prime minister said the growing cooperation between the two countries in the field of defence and security symbolises the deep mutual trust and the maturity of the relationship.

"We will work to enhance defence industries, maritime domain awareness and military exchanges. To this end, today we have decided to establish the India-Canada defence dialogue," he said.

The prime minister also highlighted the expansion of two-way ties in the education sector.

"New partnerships between several universities in AI, healthcare, agriculture and innovation are being announced. We also agreed on Canadian universities opening campuses in India," he said.

The prime minister also made a mention of how India and Canada share an "unwavering belief" in democratic values.

"We celebrate diversity. The well-being of humanity is our shared vision. This vision inspires us to move forward in every field. Today, we discussed transforming this vision into a next level partnership," he said.

In his remarks, Carney mentioned the future of India-Canada energy ties.

"Today, we are launching a strategic energy partnership with significant potential to expand bilateral energy trade. We've signed a new critical minerals partnership spanning development, processing and secure supply chains for clean energy, electric vehicles and advanced manufacturing," he said.

"We're deepening our cooperation in clean energy, expanding collaboration across wind, solar and hydrogen, because Canada has big plans as well," he said.

Carney described the uranium supply agreement as a reflection of shared commitment to clean, reliable energy.

"All of these agreements under one planet are the beginning of a new prosperous relationship that will offer generational opportunities for workers and businesses in both their countries and which will protect the planet for future generations," he said.

The two sides also agreed to boost cooperation in the space sector. The Canadian Space Agency and the Indian Space Research Organisation agreed to cooperate on earth observation and intend to explore joint initiatives on space exploration and quantum technologies, leveraging space-based technologies to support innovation and disaster resilience.

To create more cultural and educational opportunities, India and Canada decided to strengthen people-to-people ties through a series of initiatives, including the launch of a new Talent and Innovation Strategy to deepen education collaboration.

A joint statement said Modi and Carney underscored that closer cooperation between India and Canada will help reinforce international rules and norms that are applied fairly, strengthen economic resilience, promote sustainable development, and address global challenges.

It said the two Leaders affirmed their shared resolve to work together bilaterally and in multilateral fora to uphold democratic values, support inclusive growth, and contribute to peace, stability, and prosperity in the Indo-Pacific and beyond.

Recognising India and Canada's complementary strengths as energy powers, Modi and Carney agreed to advance the energy partnership aimed at deepening long-term cooperation across the energy value chain.

"They reaffirmed the immense importance of energy security and diversification of supply for the safety, well-being and economic vitality of both countries," the statement said.

It said the two leaders underscored their shared commitment to enhancing collaboration across clean energy, conventional energy, civil nuclear energy and critical minerals to promote affordability, sustainability and economic growth.