Source: Mint
Context:
India and Canada have taken a major step toward resetting bilateral relations with the signing of a landmark civil nuclear agreement and renewed commitment to conclude a Comprehensive Economic Partnership Agreement (CEPA). The agreements were finalised following bilateral talks between Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney at Hyderabad House, New Delhi.
This marks a significant diplomatic revival after relations had deteriorated in 2023.
1. Landmark Uranium Supply Agreement
- Canada will supply uranium to India under a long-term agreement.
- The deal includes cooperation in:
- Small Modular Reactors (SMRs)
- Advanced nuclear reactors
- The uranium supply agreement is valued at approximately CAD $2.6 billion (US $1.9 billion).
- It supports India’s nuclear energy expansion and clean energy goals.
The supply strengthens India’s fuel security for nuclear power generation and aligns with its low-carbon transition strategy.
2. Strategic Energy Partnership
Both leaders agreed to launch a Strategic Energy Partnership, covering:
- Uranium supply
- Liquefied Natural Gas (LNG)
- Critical minerals
- Clean technology collaboration
Canada positioned itself as a reliable LNG supplier from its west coast. The partnership also enhances cooperation in securing critical minerals essential for clean-tech manufacturing and nuclear infrastructure.
3. Defence and Maritime Cooperation
India and Canada agreed to expand cooperation in:
- Defence industry collaboration
- Maritime domain awareness
- Counter-terrorism coordination
Both sides emphasised that terrorism, extremism, and radicalisation are shared global challenges requiring close cooperation.
4. Comprehensive Economic Partnership Agreement (CEPA)
- The two sides decided to finalise CEPA negotiations soon.
- Target: Increase bilateral trade to $50 billion.
- CEPA aims to:
- Expand market access
- Promote investment flows
- Generate employment in both countries
Negotiations resumed last year after being paused amid diplomatic tensions.
Significance for India
- Strengthens long-term nuclear fuel security
- Diversifies energy and critical mineral supply chains
- Supports clean energy and manufacturing ambitions
- Expands defence and maritime cooperation
- Revives a key trade partnership amid global geopolitical shifts
