India, Canada Nearing Finalisation of $2.8 Billion Uranium Supply Deal: Report

India and Canada are reportedly close to finalising a $2.8 billion uranium supply agreement, marking a major step forward in bilateral energy cooperation and strengthening India’s long-term nuclear fuel security. According to sources familiar with the negotiations, both countries have made “substantial progress” and are working to conclude the deal in the coming months.

The agreement, once signed, will ensure a steady supply of natural uranium from Canada to India for use in its expanding fleet of nuclear reactors. India, which aims to significantly increase nuclear power generation as part of its clean-energy transition, has been seeking diversified, reliable sources of uranium to meet rising demand.

Canada is one of the world’s top uranium producers, with Saskatchewan-based deposits among the richest globally. The potential deal builds on the 2015 nuclear cooperation framework, which facilitated civilian nuclear trade between the two nations after a decades-long pause.

Industry experts believe the deal will strengthen India’s ambitions to boost nuclear energy capacity from the current levels to meet growing electricity demand without increasing carbon emissions. It is also expected to benefit Canadian mining companies, providing stable long-term offtake commitments.

Diplomatic relations between the two countries have faced turbulence in recent months, but the uranium agreement is seen as a pragmatic move driven by mutual strategic and economic interests. Analysts say both sides appear keen to restore stability in trade ties, especially in critical sectors such as energy and minerals.

Officials have not yet disclosed the final supply volumes or the duration of the agreement, but sources indicate it may cover multi-year deliveries aligned with India’s nuclear expansion plans. A formal announcement is expected after the next round of high-level consultations.