Ottawa, Mar 2: India and Canada on Monday signed a 10-year uranium supply agreement worth CAN$2.6 billion (USD 1.9 billion) and launched a strategic energy partnership, marking a major reset in ties after a diplomatic rupture in 2023.
The agreements were announced after Prime Minister Narendra Modi and his Canadian counterpart Mark Carney held wide-ranging talks in the national capital aimed at restoring momentum in bilateral relations and expanding cooperation across energy, technology and defence sectors.
“In civil nuclear energy, we have struck a landmark deal for long-term uranium supply,” Modi said, adding that the two sides would also collaborate on small modular reactors and advanced reactors.
The uranium agreement is expected to support India’s ambitious plans to expand its nuclear power capacity as part of its long-term energy transition strategy.
Carney said the deal would back India’s nuclear ambitions and described Canada as “well positioned to contribute, as a reliable supplier” of liquefied natural gas (LNG). He added that the two nations were launching a “strategic energy partnership with significant potential”.
Beyond nuclear cooperation, the agreements cover critical minerals, renewable energy, LNG supply and critical mineral supply chains. The two sides also decided to jointly host a renewable energy summit.
Modi described India and Canada as “natural partners in technology and innovation” and said cooperation would expand in artificial intelligence, supercomputing and semiconductors. Agreements were also reached on space cooperation, defence partnership and education.
On trade, both leaders reaffirmed their commitment to conclude the long-pending Comprehensive Economic Partnership Agreement (CEPA).
“Our target is to reach $50 billion in bilateral trade,” Modi said, adding that CEPA “will open new opportunities to invest and create jobs in both countries”.
Carney termed the proposed trade pact an “ambitious agreement” aimed at “reduce barriers and increase certainty”, and said he wanted to see it concluded soon.
The renewed engagement comes after relations between the two countries collapsed in 2023 when Ottawa accused New Delhi of involvement in the killing of Sikh separatist Hardeep Singh Nijjar on Canadian soil. India strongly rejected the allegations, leading to the expulsion of diplomats and suspension of visa services.
Ties have gradually improved since Carney took office in 2025, with envoys now restored.
“There has been more engagement between the Canadian and Indian governments in the last year than there has been in more than two decades combined,” Carney said. “This is not merely the renewal of a relationship. It is the expansion of a valued partnership.”
Canada’s Foreign Minister Anita Anand underlined the importance of dialogue, saying, “We need to have these diplomatic conversations in order to make progress.” On earlier remarks by a senior official regarding foreign interference, she said, “The words of the senior official are not words that I personally would use.”
The reset also reflects broader strategic calculations. Canada is seeking to diversify trade beyond the United States, which accounted for over 75 per cent of Canadian exports in 2024, amid tariff uncertainties. India, for its part, is diversifying energy sources and reducing reliance on Russia.
Surveys indicate majority public support in Canada for restoring ties with India, signalling political space for deeper engagement.
With the landmark uranium pact anchoring a broader strategic push, both sides signalled that the relationship has shifted from diplomatic crisis toward long-term economic and energy cooperation.
