India and Canada are on the cusp of finalizing a major, long-term uranium supply agreement worth approximately US $2.8 billion (₹23,400 crore). This potential deal, which came into focus following the meeting between Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney at the G20 summit in Johannesburg, is driven by India's soaring energy needs and Canada's position as a leading global uranium exporter.

Here is a breakdown of why Canada is keen on the deal and the current status of the negotiations:

⚛️ Why is Canada Selling Uranium to India?

Canada's decision to pursue this multi-billion-dollar deal is rooted in economics, long-term strategic cooperation, and diplomatic rapprochement:

• India's Massive Nuclear Expansion: India currently operates around 25 nuclear reactors and has several more under construction, with ambitious plans to significantly increase its nuclear power capacity. This expansion creates a massive, long-term, and secure market for Canadian uranium.

• Canada is a Major Supplier: Canada is one of the world's largest uranium producers, with vast reserves in Saskatchewan. The Canadian company Cameco Inc. is the intended supplier for this new contract. About 80% of Canada's uranium production is available for export.

• Reviving Civil Nuclear Ties: The deal is a significant reaffirmation of the Canada-India Nuclear Cooperation Agreement (NCA), which came into force in 2013 and allowed for the sale of Canadian uranium for peaceful, civil nuclear purposes in India. This cooperation also builds on the historical relationship, as many of India's current nuclear reactors are based on Canadian-derived designs.

• Broader Economic Partnership: The uranium supply is a centerpiece of a renewed push to strengthen overall bilateral trade and economic relations, which includes restarting talks for a Comprehensive Economic Partnership Agreement (CEPA). Both countries aim to double bilateral trade by 2030.

🤝 How Far Has the Deal Reached?

The agreement is reported to be nearing finalization, marking a substantial step forward following a period of diplomatic strain:

• Current Status: Sources familiar with the negotiations, reported by The Globe and Mail and others, indicate the two nations are close to finalizing the export agreement.

• Value and Duration: The deal is valued at about US $2.8 billion and is expected to run for approximately 10 years.

• Official Confirmation: Following the Modi-Carney meeting, India's Ministry of External Affairs (MEA) confirmed that both sides "reaffirmed their longstanding civil nuclear cooperation" and noted "ongoing discussions on expanding collaboration, including through long-term uranium supply arrangements."

• The Cameco Factor: The Canadian supplier, Cameco Inc., previously had a supply agreement with India that ran from 2015 to 2020. This new, larger contract signifies a significant renewal and expansion of that business relationship.

• Beyond Uranium: Discussions are not limited to fuel supply; India has also shown interest in Canadian technology for Small Modular Reactor (SMR) development, which would deepen the strategic nuclear collaboration.

This nuclear pact, alongside the recently announced Australia-Canada-India Technology and Innovation (ACITI) Partnership, signals a major effort to improve and expand the strategic and economic relationship between New Delhi and Ottawa.