Once implemented¹, the deal is likely to provide a boost to India's plans to increase its nuclear capacity to meet growing energy demands.

 

The deal was agreed in 2010, but there had been differences over supervision² of the use of uranium in India.

 

Canada has banned the trade of nuclear materials with India since 1976.

 

"Canada with its large and high quality reserves of uranium could become an important supplier to the Indian nuclear power programme," India's Prime Minister Manmohan Singh and his Canadian counterpart Stephen Harper said in a joint³ statement.

 

 

India's economy has seen rapid expansion in recent years resulting in a surge in demand for energy in the country. 

 

In a bid to meet its growing energy needs, India has been looking to increase its dependence⁴ on nuclear energy.

 

It is planning to set up some 30 reactors⁵ over as many years and get a quarter of its electricity from nuclear energy by 2050.

 

As a result it has been looking to secure supplies of uranium to achieve that target. 

 

Canada's Prime Minister Stephen Harper said that being able to be a part of India's nuclear power plans was "a really important economic opportunity for an important Canadian industry... that should pay dividends⁶ in terms of jobs and growth for Canadians down the road".

 

Earlier this month, India agreed to begin negotiations⁷ on a civil nuclear co-operation agreement with Australia, which holds an estimated 40% of the world's uranium.

 

Last year, it agreed a deal that will allow South Korea to export its nuclear energy technology to India.

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