Saturday, 14 Mar, 2026
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Securing uranium from Canada would diversify India’s nuclear fuel supplies. India imported $55.66 million worth in 2017, but none since 2023, relying instead on France, Russia and the US
India and Canada have moved to reset economic ties after years of diplomatic strain, agreeing last week on the terms of reference (ToR) for a comprehensive economic partnership aimed at lifting bilateral trade to $50 billion by 2030, from $8.7 billion in FY25. Energy cooperation is emerging as the centrepiece of this renewed engagement, alongside efforts to diversify supply chains and reduce dependence on traditional partners.
A major outcome of the talks was $1.9 billion uranium supply agreement, intended to secure long-term fuel supplies for India’s civilian nuclear programme and support the expansion of clean, reliable base-load power. The agreement was signed between the Indian government and Cameco, one of the world’s largest uranium producers. Both sides also indicated they would explore cooperation in small modular nuclear reactors and advanced reactor technologies.
For India, securing uranium from Canada helps diversify its nuclear fuel sources. In 2017, India imported $55.66 million worth of uranium from Canada. But since 2023, there have been no uranium imports from Canada, with India relying instead on supplies from France, Russia, and the United States. The new deal therefore marks a significant step toward reviving nuclear fuel trade between the two countries.
Energy trade has historically been an important part of the bilateral relationship, though its role has fluctuated. At its peak in FY22, India’s imports of crude oil and related products from Canada accounted for more than one-tenth of its total imports from the country. Since then, however, the share has moved at lower levels, reflecting changing trade dynamics and shifts in energy sourcing.
Coal has also been a key component of India’s imports from Canada. By value, coal and coke have long featured among the major product groups shipped from Canada to India. But their importance has gradually declined. The share of coal and coke in India’s imports from Canada fell to 8.81 per cent in FY26 (until January), indicating a shift in the composition of bilateral trade.
The renewed economic push comes after relations between the two countries deteriorated sharply in 2023. At the time, then Canadian Prime Minister Justin Trudeau alleged Indian involvement in the killing of a Canadian Sikh separatist — accusations that India rejected as “absurd”. The dispute escalated into a diplomatic standoff, leading to the expulsion of diplomats and the freezing of trade negotiations.
The current outreach marks an attempt to rebuild the relationship. Canadian Prime Minister Mark Carney’s four-day visit to India is aimed at restoring trust and expanding cooperation in areas such as clean energy, critical minerals and agricultural value chains.
The timing also reflects broader global trade shifts. Both countries are exploring ways to diversify trade away from the US, amid uncertainty triggered by tariff announcements from Washington. India has been simultaneously expanding its network of trade agreements. It concluded a free-trade pact with the European Union in January, while negotiations with the US on a separate trade deal have recently been paused pending greater clarity after the invalidation of tariffs imposed by Donald Trump.
In this context, the India–Canada reset could open a new chapter in bilateral trade, with energy cooperation and nuclear fuel supply at its core. Whether the partnership ultimately delivers on the ambitious $50-billion trade target will depend on how quickly the two sides translate diplomatic intent into concrete market access and investment flows.
