India and Canada took a major step toward strengthening bilateral ties on Monday, signing a landmark agreement on uranium cooperation and agreeing to finalize a comprehensive economic partnership agreement in the near future. The deals follow high-level talks between Prime Minister Narendra Modi and his Canadian counterpart, Mark Carney, at Hyderabad House in New Delhi, signaling a renewed and ambitious chapter in India-Canada relations.
A centerpiece of the agreements is a long-term uranium supply deal, which positions Canada as a critical partner in India’s civil nuclear energy program. Prime Minister Modi emphasized that the deal will extend beyond uranium, noting plans for cooperation on small modular reactors and advanced nuclear technologies. “In the civil nuclear energy sector, we have struck a landmark deal for long-term uranium supply. We will also work together on small modular reactors and advanced reactors,” Modi said, highlighting the strategic significance of the agreement for India’s growing energy ambitions.
Under the uranium deal, Canada will supply India with fuel for its nuclear reactors, reinforcing energy security and supporting the South Asian nation’s plans for clean and reliable power generation. Carney described the pact as a launch of a “strategic energy partnership with significant potential,” including a CAD$2.6 billion (US$1.9 billion) uranium supply agreement. He added that Canada is well-positioned to contribute liquefied natural gas from its west coast to India, while also serving as a key source of critical minerals for India’s manufacturing, clean-tech, and nuclear sectors.
Beyond energy, the bilateral talks touched on broader defence and security cooperation. Modi and Carney discussed ways to enhance defence industries, maritime domain awareness, and collaboration against terrorism. Modi stressed that both countries face shared threats from terrorism, extremism, and radicalization, which he described as “serious challenges not only for both countries but for all of humanity.” He underlined the importance of close cooperation to safeguard global peace and stability.
Economic engagement was another central focus of the discussions. The two leaders firmed up the terms of reference for a Comprehensive Economic Partnership Agreement, resuming negotiations that aim to unlock a target of $50 billion in bilateral trade. Modi emphasized that the agreement “will open new opportunities to invest and create jobs in both countries,” signaling a mutual commitment to deepen commercial ties and reduce barriers to trade and investment.
Carney hailed the overall expansion of India-Canada relations, noting that government engagement between the two countries in the past year has exceeded the levels seen in more than two decades combined. “This is not merely the renewal of a relationship. It is the expansion of a valued partnership with new ambition, focus, and foresight, a partnership between two confident countries charting our own course for the future,” he said, highlighting the strategic recalibration of ties following a period of tension.
The recent thaw comes after a rocky period in bilateral relations, particularly following Ottawa’s 2023 allegations implicating New Delhi in the killing of Hardeep Singh Nijjar, a Canadian citizen advocating for an independent Sikh state. India has consistently denied involvement in the incident, and Carney’s visit is seen as a crucial step toward restoring trust and rebuilding cooperation across multiple sectors, including trade, energy, and technology.
The agreements signed in New Delhi also cover the critical minerals sector, an area of growing importance as India seeks to secure resources for clean energy, high-tech manufacturing, and industrial growth. By leveraging Canada’s resource base and globally competitive companies, the two nations aim to create a mutually beneficial framework for investment, technology transfer, and sustainable development.
Both leaders framed the visit and agreements as a statement of shared values and a commitment to democratic principles. Modi said, “India and Canada hold an unwavering faith in democratic values. We celebrate diversity. The well-being of humanity is our shared vision. This very vision inspires us to move forward in every field.” Carney echoed the sentiment, emphasizing the potential of expanded bilateral ties to offset global economic uncertainties and diversify partnerships amid shifting international alliances.
The uranium and critical minerals deals, combined with the planned Comprehensive Economic Partnership Agreement, are expected to bolster India’s long-term energy and industrial strategies while providing Canada with a reliable and growing partner in South Asia. Analysts suggest that the strategic and economic dimensions of the agreements signal a significant shift in India-Canada relations, transforming a previously cautious partnership into a robust collaboration spanning energy, defence, trade, and technology.
Carney arrived in India on Friday with the stated goal of resetting ties and doubling trade, addressing gaps left by Canada’s strained relations with the United States. The talks in New Delhi appear to have successfully laid the groundwork for a new era of cooperation, demonstrating how shared economic and security interests can overcome past political frictions and open opportunities for mutually beneficial engagement.
