India and Canada Forge Powerful Partnership in Clean Energy and Minerals

India and Canada are set to deepen their collaboration in the domain of clean energy and critical minerals, as Canadian Prime Minister Mark Carney has underlined his country's commitment to being a dependable ally for New Delhi. During diplomatic talks, Secretary (East) P Kumaran highlighted the new avenues of cooperation.

The focus remains firmly on nuclear fuel supplies, the development of small modular reactors, and advanced conventional reactors. PM Narendra Modi has outlined ambitious goals of 100 GW nuclear energy capacity by 2047, signaling a critical scale-up by 2030. Amid global uncertainty, Canada's role as an energy partner seems even more crucial.

In light of rising trade disputes with the U.S. and escalating tensions in the Middle East, Canada is pivoting its export strategy towards India. A robust uranium concentrate deal, worth $2.6 billion, has been struck with Cameco Corp, ensuring India’s nuclear fuel needs are met, thereby accelerating its nuclear ambitions.

Beyond uranium, a fresh MoU on Critical Minerals was endorsed, safeguarding the supply chains for components crucial to India's electric vehicle and semiconductor initiatives. Carney’s visit also renewed discussions on the Comprehensive Economic Partnership Agreement set for detailed deliberation, with a completion target by 2026.

Canada's interests in India are underpinned by substantial investments by Canadian pension funds, exceeding $107 billion. As India works to enhance its investment allure, discussions are underway to extend benefits similar to those catered to sovereign wealth funds, potentially boosting competitiveness and drawing further Canadian financial influx.