India, Canada Sign $2.6 Billion Uranium Deal, Target $50 Billion Trade By 2030

The uranium supply agreement, valued at $2.6 billion, will support India’s civil nuclear energy sector, according to official statements issued after the Modi-Carney talks in New Delhi on March 3. The two sides also signed a Memorandum of Understanding on critical minerals to strengthen resilient supply chains.

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The current volume of two-way annual trade between India and Canada stands at around $13 billion, according to official data cited during the discussions. Both leaders agreed to finalise the CEPA at the earliest to unlock trade and investment potential and generate employment opportunities in both countries.

Focus On Energy, Defence, And Technology

In the energy sector, the two countries launched a strategic energy partnership covering hydrocarbons, renewable energy, green hydrogen, and energy storage, according to statements from both governments. They also agreed to cooperate on small modular reactors and advanced nuclear technologies.

Canada’s pension funds have invested $100 billion in India, reflecting long-term capital flows between the two economies, Prime Minister Modi said in his media statement.

The leaders agreed to start a defence dialogue between India and Canada to improve cooperation in the defence industries, maritime domain awareness, and military exchanges. They also agreed to work together more on important technologies and education. For example, universities will work together on artificial intelligence, healthcare, agriculture, and innovation. Canadian universities are set to open campuses in India, according to the statement.

Talks On Security And Diplomatic Reset

The two leaders discussed the security situation in West Asia, with India reiterating support for resolving disputes through dialogue and diplomacy. Modi stated that terrorism, extremism, and radicalisation remain common challenges requiring close cooperation.

The agreements come at a time when both sides are trying to repair their diplomatic ties after tensions over the death of Hardeep Singh Nijjar in 2023. India called back its high commissioner and five diplomats in October 2024 after Ottawa linked them to the case. Both countries then sent diplomats home. Subsequently, both sides reinstated high commissioners in each other’s capitals.

Carney, who arrived in New Delhi on March 2 after visiting Mumbai, said the new agreements marked the beginning of a renewed partnership focused on energy security, clean technology, and trade expansion. The signing of the uranium deal and the commitment to conclude the CEPA signal a formal step toward strengthening bilateral economic and strategic ties.