India, Canada to finalise $2.8 billion uranium export deal amid improving diplomatic relations: Report

India and Canada are finalising a deal to supply New Delhi with uranium, a further sign of warming ties after two years of strained diplomatic relations, according to The Globe and Mail.

The deal is likely to be worth approximately $2.8 billion, with a term of 10 years, individuals familiar with the development said. The terms of the deal may be modified before the announcement, they added.

Canada’s Cameco Corp would supply uranium, and the export deal could form part of a broader nuclear cooperation effort between Canada and India.

On Sunday, Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney agreed to resume discussions on a free trade deal on the sidelines of the G20 Leaders' Summit in Johannesburg, South Africa.

In 2015, the two countries signed a five-year agreement for Cameco to export uranium to India, valued at approximately $350 million at the time, based on the prevailing uranium prices.

However, the latest agreement will be a new pact rather than a renewal of the 2015 deal, according to people familiar with the development.

Cameco did not comment on the matter, with Veronica Baker, director of communications, telling the news portal, “Unless otherwise disclosed, all our commercial contracts are confidential.”

Other key areas of cooperation between Ottawa and New Delhi on nuclear power may include Canada’s initiatives to develop a commercial, revenue-generating small modular nuclear reactor.

India-Canada trade deal update

Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney also discussed “the Australia-Canada-India Technology and Innovation (ACITI) Partnership, which would give a boost to trilateral cooperation in the fields of critical technologies, nuclear energy, diversification of supply chains and AI,” according to a statement from the Ministry of External Affairs.

India and Canada have also planned to initiate negotiations on a high-ambition Comprehensive Economic Partnership Agreement (CEPA), with the aim to double bilateral trade to $50 billion by 2030. “Both sides reaffirmed their longstanding civil nuclear cooperation and noted the ongoing discussions on expanding collaboration, including through long-term uranium supply arrangements,” the statement read.

The two prime ministers discussed collaboration in trade and investment, defence, education, space, science and technology, and energy sectors. Prime Minister Carney voiced support for India's hosting of the AI Summit in February 2026.

India- Canada diplomatic tensions

Diplomatic tensions between India and Canada arose in 2023 after the killing of Khalistani leader Hardeep Singh Nijjar. Then-Prime Minister Justin Trudeau said that his government was "actively pursuing credible allegations" linking Indian government agents to the murder of Hardeep Singh Nijjar on its soil. India dismissed these claims as “absurd and motivated”.

Before meeting Modi, Carney told reporters that it was important to get better trade access to “one of the world’s largest and fastest-growing economies,” Bloomberg reported. The two countries also continue to have dialogue between their law enforcement and national security agencies, he said.