India and Canada sign a $2.6 billion uranium supply agreement, accelerate CEPA free trade negotiations, and deepen strategic cooperation in energy, critical minerals, LNG, AI, and clean technology, targeting $50 billion bilateral trade by 2030.
Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney on Monday set an ambitious year-end deadline to conclude negotiations for the Comprehensive Economic Partnership Agreement (CEPA), marking a renewed push to elevate India-Canada bilateral ties.
The announcement came alongside the signing of a landmark CAD $2.6 billion commercial uranium supply agreement between Canadian nuclear giant Cameco and India’s Department of Atomic Energy. The long-term contract is expected to significantly bolster India’s civil nuclear energy generation capacity while strengthening its clean energy transition and long-term energy security goals.
Strategic Energy Partnership Strengthened
The two leaders reaffirmed their shared vision under the India-Canada Strategic Energy Partnership, agreeing to expand collaboration across the entire energy value chain. According to the joint statement issued after the summit, both countries underscored their commitment to enhancing cooperation in clean energy, conventional energy, civil nuclear energy, and critical minerals.
The uranium deal is seen as a cornerstone of India’s effort to diversify its nuclear fuel sources and reduce reliance on volatile global markets. For Canada, one of the world’s leading uranium exporters, the agreement strengthens its position as a reliable energy partner in the Indo-Pacific region.
CEPA Negotiations Accelerated
A key outcome of the summit was the renewed commitment to finalize the Comprehensive Economic Partnership Agreement (CEPA) by the end of the year. The proposed trade pact aims to unlock greater market access, reduce tariffs, and promote investment flows between the two economies.
Currently, bilateral trade between India and Canada stands at nearly $9 billion for 2024-25. Both leaders expressed optimism that trade could surge to $50 billion by 2030, driven by energy cooperation, technology partnerships, and expanded private sector engagement.
During a joint media conference, Prime Minister Modi highlighted the vast untapped potential in sectors such as natural resources, agriculture, and advanced technologies. Prime Minister Carney echoed the sentiment, emphasizing Canada’s commitment to deepening economic engagement with one of the world’s fastest-growing major economies.
Expanding Energy Trade: LNG, Oil, and LPG
The leaders discussed scaling up bilateral energy trade, including India increasing imports of crude oil and liquefied natural gas (LNG) from Canada, while exporting refined petroleum products to the Canadian market.
Canada reaffirmed its ambitious plan to expand heavy oil export infrastructure and ramp up LNG supplies to the Indo-Pacific region. The country aims to produce 50 million tonnes of LNG annually by 2030 and potentially 100 million tonnes by 2040, positioning itself as a global energy powerhouse.
Discussions also included expanding cooperation in liquefied petroleum gas (LPG), with Indian public sector oil companies exploring long-term partnerships with Canadian firms. Both governments emphasized the importance of private investment flows, financing tools, and equity partnerships to ensure commercially viable energy collaborations.
Critical Minerals and Clean Energy Cooperation
Recognizing their complementary strengths, India and Canada signed a Memorandum of Understanding on critical minerals cooperation. The agreement aims to build resilient and diversified supply chains for essential minerals used in renewable energy, electric vehicles, and advanced manufacturing.
The two nations also committed to exploring collaboration on securing India’s mineral stockpiling initiatives and supporting commercially robust outcomes for companies on both sides.
In a parallel development, the leaders welcomed the signing of a Memorandum of Understanding on Clean Energy Cooperation. The framework will promote joint initiatives across solar, wind, bioenergy, small hydro, energy storage, and capacity-building programs.
Canada has set a target to double its electricity supply by 2050, largely through renewable energy expansion and energy storage technologies. India, already one of the fastest-growing renewable energy markets globally, stands to benefit from Canadian expertise and investment in grid modernization and clean technologies.
Space, AI, and Technological Sovereignty
Beyond traditional energy sectors, India and Canada signaled strong interest in expanding collaboration in space technology and artificial intelligence. The leaders discussed enhancing strategic partnership between their respective space agencies and private sector players.
Both sides agreed to explore joint initiatives integrating AI into space and aerospace technologies, including earth observation and satellite-based applications. By co-developing AI tools for space missions, the two countries aim to strengthen technological sovereignty and drive innovation.
The collaboration may also extend to AI-assisted diagnostic tools for distance medicine, improving healthcare delivery in remote regions of both nations — from rural India to Canada’s northern territories.
Agriculture and Food Security
Acknowledging growing complementarities in agriculture and agri-food systems, the leaders underscored the importance of strengthening cooperation to boost food security, farm productivity, and resilient supply chains. Potash exports from Canada to India remain critical for supporting India’s fertilizer needs.
A New Chapter in Bilateral Relations
The summit signals a broader strategic reset in India-Canada relations, focusing on energy security, economic growth, and technological advancement. With the $2.6 billion uranium agreement now formalized and CEPA negotiations entering an accelerated phase, both governments appear determined to translate diplomatic momentum into tangible economic gains.
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If successfully concluded by year-end, the CEPA could redefine India-Canada trade architecture and unlock a new era of cooperation spanning nuclear energy, critical minerals, renewable power, artificial intelligence, and space exploration.
