Uranium Supply Deal Highlights Strategic Push in India-Uzbekistan Ties
Prime Minister Narendra Modi's two-day state visit to Uzbekistan concluded with a significant strategic outcome: a long-term arrangement for uranium supply to India. The agreement, signed during the August 29-30 visit to Tashkent, was announced during delegation-level talks between Modi and Uzbek President Shavkat Mirziyoyev at the Kuksaroy Presidential Palace.
"We will also establish a long-term arrangement for the supply of uranium. Today, we are formalising three sister-city and sister-state arrangements. We should create a roadmap to fully realise their potential," Modi said during the talks.
The uranium deal is seen as part of India's broader efforts to secure reliable nuclear fuel for its expanding civilian nuclear power programme. Uzbekistan, a leading global uranium producer with significant recoverable resources, is viewed as an important potential partner for India as it seeks to diversify its sources of nuclear fuel. The arrangement adds to India's existing long-term supply agreements with Kazakhstan's Kazatomprom, Canada's Cameco, and France's Orano, as reported by Moneycontrol.
Comprehensive Strategic Partnership and Broader Agreements
The two countries elevated their relationship to a Comprehensive Strategic Partnership during the visit. The summit produced 11 agreements covering defence, digital public infrastructure, trade, and culture, according to reports. Among the notable outcomes was an agreement on UPI interoperability in Uzbekistan, facilitating digital payment integration.
The leaders also discussed urban development cooperation, including Uzbekistan's 'New Tashkent' project and India's GIFT City in Gujarat, as reported by Times Now. Secretary (West) in India's Ministry of External Affairs, Ambassador Sibi George, was quoted by Times Now as saying the two countries were "closing in to signing of an agreement very shortly" in the context of the uranium deal.
Critical Minerals and Economic Targets
The uranium agreement was one element of a wider push on mining and critical minerals. India and Uzbekistan signed a memorandum of understanding on cooperation in geology and mineral resources, aimed at strengthening collaboration in exploration and development of mineral resources, as reported by Times Now. Moneycontrol reported that the two sides agreed to cooperate on critical minerals and rare earth elements.
Bilateral trade targets were also set, with the two countries aiming to increase trade to $5 billion by 2030, a fivefold increase from current levels, according to Moneycontrol.
India's Nuclear Expansion and Fuel Diversification
The uranium arrangement comes as India pursues ambitious targets for nuclear power capacity: about 20 GW by 2030 and 100 GW by 2047, as reported by Moneycontrol. The country is developing 700 MW Pressurised Heavy Water Reactors at Kakrapar, Gorakhpur, and Kaiga, the same report noted.
India has domestic uranium deposits at Jaduguda in Jharkhand and Tummalapalle in Andhra Pradesh, but has also developed civil nuclear cooperation with Russia, Kazakhstan, Canada, France, Mongolia, Namibia, and Argentina, according to Moneycontrol. The publication also reported that India and Australia concluded a commercial implementation arrangement for Australian uranium exports on July 9, weeks before the Uzbekistan agreement.
The focus on diversifying nuclear fuel supplies is part of a broader strategy to secure critical minerals. Moneycontrol noted that China dominates rare earth processing and permanent magnet production, prompting India to strengthen its own supply chain. India established Khanij Bidesh India Limited (KABIL) in 2019 to acquire critical minerals overseas, and its National Critical Minerals Mission aims to develop the domestic ecosystem for critical minerals, the report added.