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India and Canada Seal C$2.6B Uranium Deal to Boost Nuclear Energy by 2027

India and Canada Seal C$2.6B Uranium Deal to Boost Nuclear Energy by 2027
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India and Canada announced a C$2.6 billion (US$1.9 billion) uranium supply pact on Monday, in a landmark nuclear energy deal that both governments framed as a reset of relations after a two‑year diplomatic freeze.bbc +1 The agreement will see Canadian miner Cameco ship nearly 22 million pounds of uranium ore concentrate to India over nine years starting in 2027, underpinning New Delhi’s plans to sharply expand nuclear power.aljazeera

The deal was unveiled in New Delhi after talks between Indian Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney, who also agreed to push for a comprehensive trade pact by the end of 2026 and to deepen cooperation in technology, critical minerals and defence.bbc +1 Bilateral trade, currently around US$9 billion, is targeted to rise to as much as US$50–70 billion by 2030 under the new partnership frameworks.reuters +1

Energy Security and a High‑Stakes Commercial Bet

Under the long‑term contract, Cameco will supply India’s Department of Atomic Energy with uranium fuel for use in the country’s fleet of 24 operating reactors between 2027 and 2035, on market‑linked pricing terms.aljazeera Cameco estimated the deal’s value at about C$2.6 billion using a uranium price of US$86.95 per pound, highlighting how tight global supply and rising prices have turned nuclear fuel into a strategic commodity.aljazeera

India has set an ambition to reach 100 GW of nuclear capacity by 2047 as it seeks baseload, low‑carbon power to meet surging electricity demand and climate goals.aljazeera Modi called the uranium pact a “landmark deal for the long‑term supply of uranium” and said the two countries would also “work together on small modular reactors and advanced reactors,” signalling interest in Canadian technology beyond raw fuel.bbc For Canada, the agreement secures a marquee customer for its uranium sector, particularly in Saskatchewan, and diversifies exports away from the United States.aol

Diplomatic Reset Meets Non‑Proliferation Concerns

The pact marked a sharp turnaround from 2023, when Ottawa publicly accused Indian agents of involvement in the killing of Sikh activist Hardeep Singh Nijjar, triggering tit‑for‑tat expulsions and a freeze in talks.bbc +1 Carney described the past year as a period of intense re‑engagement, saying there had been “more engagement between the Canadian and Indian governments in the last year than there has been in more than two decades combined.”bbc His government pitched the uranium deal and broader energy cooperation as proof that the relationship had moved out of what he termed a “challenging period.”aol

Critics, however, warned that the commercial windfall carries strategic risks. India is a nuclear‑armed state outside the Nuclear Non‑Proliferation Treaty, and past Canadian reactor technology was linked to India’s first nuclear weapons test.indicanews Analysts such as nuclear safety expert Gordon Edwards argued that selling uranium for civilian reactors can free up India’s domestic uranium for weapons production, saying India is “not just a routine customer” but a special case that demands public scrutiny of safeguards and end‑use assurances.indicanews Some members of Canada’s Sikh diaspora and opposition lawmakers also questioned whether Ottawa was prioritizing trade over accountability on foreign interference.bbc +1

The Bigger Picture

The India‑Canada uranium pact underscored how energy security and climate policy are reshaping alliances, even amid fraught geopolitics. For New Delhi, long‑term nuclear fuel guarantees bolster its decarbonization strategy and reduce vulnerability to fuel shocks; for Ottawa, the deal reinforces Canada’s role as a key supplier in a tightening uranium market while anchoring a broader bid to secure an Asia‑focused trade partner. Yet the agreement also sharpened debates over how traditional non‑proliferation norms apply in a world where nuclear power is being revived as a climate tool, leaving both governments to balance economic gains and strategic partnerships against calls for greater transparency and stricter safeguards.

bbc BBC News; aljazeera Cameco press release; reuters Reuters; aol CBC; indicanews The Globe and Mail opinion.