Canada's CANDU (CANada Deuterium Uranium) reactor complex in New Brunswick province

India and Canada are intensifying their strategic partnership in critical minerals and clean energy, as highlighted during Canadian Prime Minister Mark Carney's official visit to New Delhi.

The Ministry of External Affairs (MEA) briefing underscored Canada's pledge to serve as a reliable and stable partner for India, with Carney emphasising this commitment at least three times in discussions with Prime Minister Narendra Modi.

Secretary (East) P Kumaran detailed the focus on clean energy cooperation, encompassing nuclear fuel supplies, small modular reactors (SMRs), and advanced conventional reactors. Both nations expressed a broad commitment to collaborate across the entire reactor value chain, marking a significant step in bilateral ties.

Prime Minister Modi outlined an ambitious target of achieving 100 gigawatts (GW) of nuclear power capacity by 2030, with a longer-term goal by 2047. This aggressive scale-up aligns with India's energy security needs amid global geopolitical turbulence, including trade tensions with the United States and instability in the Middle East.

Canada views India as a key partner for diversifying its resource exports, particularly as it faces 15 per cent tariffs from the US. For India, partnering with Canada helps reduce reliance on Persian Gulf energy sources, enhancing national security through stable, alternative supplies.

India's current nuclear installed capacity stands at approximately 8.8 GW, necessitating a massive expansion to meet the 100 GW target. Bridging this gap demands unwavering fuel supplies, which Canada is addressing through Cameco Corp.'s landmark $2.6 billion deal for uranium concentrate over nine years, from 2027 to 2035.

Unlike prior agreements limited to raw materials, this 2026 pact covers the full nuclear technology lifecycle. Leaders committed to joint development and deployment of SMRs, positioned as the future of power grids for replacing ageing coal plants and enabling decentralised energy generation.

Collaboration extends to heavy-water reactor technologies, evolving from original CANDU designs. Beyond uranium, a new Memorandum of Understanding (MoU) on critical minerals secures supply chains for lithium, cobalt, and rare earths, vital for India's electric vehicle (EV) and semiconductor ambitions.

Progress on the Comprehensive Economic Partnership Agreement (CEPA) advanced with agreement on terms of reference, paving the way for detailed discussions targeting completion by the end of 2026. This framework aims to boost bilateral trade amid shifting global dynamics.

Canadian pension funds have invested substantially in India, surpassing $107 billion, with 30 per cent of their Asia-Pacific portfolio allocated here. These funds—spanning provincial, federal, and employee categories—recognise India's sustained growth and future potential.

Canada urged India to extend investment benefits currently offered to sovereign wealth funds to pension funds, enhancing competitiveness against regional financial centres. Prime Minister Modi assured he would review this with domestic teams.

The partnership reflects mutual strategic interests: Canada's pivot from traditional markets and India's drive for self-reliance in energy and minerals. Amid escalating Israel-Iran tensions and US trade frictions, this alliance promises fuel security and technological advancement for both.

ANI