India and Canada are close to finalising a $2.8 billion uranium export pact, marking a significant improvement in bilateral relations following a long diplomatic rift. The ten-year agreement will include uranium supplies from Canada’s Cameco Corp., as part of the two countries’ resumed nuclear cooperation. Although the final details may alter, insiders believe the agreement will be a new one rather than an extension of the $350 million deal signed in 2015.

The progress coincides with Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney’s meeting at the G20 Summit in Johannesburg. Both leaders decided to continue negotiations on a Comprehensive Economic Partnership Agreement, with the goal of doubling bilateral trade to $50 billion by 2030. They also discussed collaboration in advanced technology, nuclear energy, artificial intelligence, defence, education, and space. Carney stated his support for India’s AI Summit, which is set for February 2026.

Diplomatic relations deteriorated in 2023 after former Canadian Prime Minister Justin Trudeau claimed Indian participation in the killing of Khalistani leader Hardeep Singh Nijjar, which New Delhi denied. Despite previous difficulties, both countries are now beginning dialogue, with discussions between their security and law enforcement organisations underway.