India and Australia Finalise Uranium Import Deal to Boost Clean Energy
India and Australia have finalised an operational arrangement for the export of Australian uranium to India, a move that will bolster India's nuclear energy programme and reduce reliance on fossil fuels. The agreement was announced on Thursday during Prime Minister Narendra Modi's visit to Melbourne, following a meeting with Australian Prime Minister Anthony Albanese.
The deal enables Australian uranium exports to India under the two countries' long-standing civil nuclear agreement, which was first signed in 2014. “Australia and India are close partners and even closer friends,” Albanese told reporters, according to Reuters. “The arrangement facilitates Australian uranium exports to India to help increase the share of non-fossil fuel power capacity, providing an additional market for the Australian resources sector.”
India, which has a growing nuclear energy sector, currently operates 22 nuclear reactors with a combined capacity of about 7,480 megawatts. The country aims to triple its nuclear power capacity by 2032 as part of its commitment to reduce carbon emissions. Australia, which holds about one-third of the world's known uranium reserves, is a key supplier for civil nuclear energy.
The agreement has been in the works for several years, with both nations completing necessary domestic procedures. India has signed civil nuclear cooperation agreements with several countries, including the United States, France, and Russia, to secure fuel supplies for its reactors. The Australian deal is seen as a significant step to diversify sources and ensure long-term fuel security.
Prime Minister Modi described the arrangement as a “milestone” in India-Australia relations, highlighting mutual benefits. “This will not only support India's clean energy transition but also strengthen economic ties between our nations,” he said in a joint statement. Albanese echoed the sentiment, noting that the deal would create jobs in Australia's mining sector while helping India meet its climate goals.
Environmental groups have expressed mixed reactions, with some raising concerns about nuclear safety and waste. However, both governments have emphasised that Australian uranium will be exported under strict non-proliferation standards and used only for peaceful purposes. The International Atomic Energy Agency (IAEA) will oversee safeguards to ensure compliance.
The deal is expected to be implemented in phases, with the first shipments of uranium likely to arrive in India within the next year. It marks a deepening of strategic ties between India and Australia, covering not just energy but also defence, trade, and technology cooperation.
