India and Canada target year-end trade deal, seal $1.9 billion uranium agreement

India and Canada are aiming to finalise a Comprehensive Economic Partnership Agreement (CEPA) by the end of this year, Canadian Prime Minister Mark Carney said on Monday. Carney, on his first visit to India since becoming prime minister, met Prime Minister Narendra Modi at Hyderabad House in New Delhi to discuss bilateral ties.

“This agreement will reduce barriers, increase certainty, and unlock opportunities for exporters, investors, and workers in both countries,” Carney said, signaling a strong economic push.

Nuclear collaboration and Uranium deal

Add Zee Business as a Preferred Source

The two nations also signed a $1.9 million uranium deal, marking a significant step in energy cooperation. India’s Department of Atomic Energy and Canada’s Cameco, one of the world’s largest publicly traded uranium companies, inked the agreement.

Under the deal, Cameco will supply 11,000 tons of reactor fuel to India from 2027 to 2035. Beyond uranium, the countries plan to collaborate on small modular nuclear reactors, advanced reactors, liquefied natural gas, critical minerals, solar, and hydrogen projects.

Trade and strategic goals

Prime Minister Modi said the two nations aim to achieve $50 billion in trade by 2030. “Unlocking the full potential of economic cooperation is our priority,” he added.

Both leaders also discussed ways to enhance cooperation in combating terrorism. “We agree that terrorism, extremism, and radicalisation are shared and serious challenges not only for both countries but for all of humanity. Our close cooperation against them is extremely important for global peace and stability,” Modi said.

Diplomatic thaw after tensions

Carney’s visit comes amid a thaw in India-Canada relations, which had soured in 2023 after former Canadian Prime Minister Justin Trudeau claimed that Canadian intelligence agencies were investigating alleged links between Indian agents and the killing of Khalistani separatist Hardeep Singh Nijjar in Canada.

Nijjar, the head of the Khalistan Tiger Force (designated a terrorist outfit in India), was a supporter of an independent Sikh nation sought by some groups. India rejected Canada’s allegations at the time.

Ahead of Carney’s visit, Canadian officials suggested that India was no longer linked to violent crimes in Canada. However, The Globe and Mail reported on Monday that Canadian security officials received evidence indicating that Indian consular staff in Vancouver may have supplied information related to the Nijjar case.