Canadian Prime Minister Mark Carney signed a 10-year, $1.9 billion uranium supply agreement during his visit to India. The deal has been interpreted as a message of a “new era of partnership” following a period of strained relations between the two countries.
A notable energy agreement was concluded between Canada and India. During his visit to New Delhi, Carney met with Indian Prime Minister Narendra Modi.
It was reported that the two sides signed a 10-year uranium supply agreement valued at $1.9 billion.
Carney described his visit as the beginning of a “new era of partnership.” He was quoted as saying, “This visit marks the end of a challenging period and the beginning of a more ambitious partnership between two complementary countries.”
Relations Entered a Tense Period in 2023
Relations between Canada and India became seriously strained during the 2023–2024 period. A diplomatic crisis erupted after the previous Canadian government alleged that Indian agents were involved in the killing of a Sikh separatist in British Columbia.
Following mutual expulsions of diplomats and suspended trade talks, both sides are now said to be moving toward renewed comprehensive economic cooperation.
Carney also announced that the Canada-based company Cameco will provide long-term uranium supplies to India. It was noted that Canada is the world’s second-largest uranium producer.
India’s Energy Strategy
The agreement is reportedly linked to India’s plans to expand its nuclear energy capacity. Nuclear power currently accounts for only a small share of the country’s electricity generation, but increasing capacity is a key objective.
India’s domestic uranium production is limited, making long-term import agreements increasingly important.
India’s Ambassador to Canada, Dinesh Patnaik, was reported as saying that they are “ready to take everything Canada has to offer” in the energy sector. Patnaik pointed to a broad scope of cooperation, including oil, LPG, LNG, and uranium.