Australia has opened a long-delayed commercial route for uranium exports to India, while Uzbekistan, an existing supplier, is working with New Delhi on a new long-term arrangement as an earlier supply contract approaches the end of its tenure.
The moves add to India’s efforts to maintain adequate nuclear fuel supplies as its reactor fleet expands and reduce dependence on a limited set of overseas suppliers.
What is changing in India-Uzbekistan uranium ties?
While no new uranium supply pact was among the 11 agreements announced during the visit, the two sides highlighted progress towards a long-term arrangement for uranium supplies to India.
India and Uzbekistan had signed a long-term contract in January 2019 under which Uzbekistan’s Navoi Mining and Metallurgical Company was to supply 1,100 metric tonnes of uranium to India between 2022 and 2026.
Uzbekistan is among the world’s leading uranium producers. It produced around 4,000 tonnes of uranium in 2024, accounting for roughly 7 per cent of global mine production.
According to World Nuclear Association data based on the 2024 Red Book, Uzbekistan has around 40,200 tonnes of reasonably assured recoverable uranium resources and another 49,220 tonnes of inferred recoverable resources.
How has Australia opened another uranium supply route?
The Uzbekistan discussions come two months after India and Australia took a key step towards operationalising commercial uranium supplies during Modi’s July visit.
India and Australia signed a civil nuclear cooperation agreement in 2014, which entered into force in 2015. However, large-scale commercial uranium supplies to India did not take off.
In July 2026, the two countries signed an Administrative Arrangement to implement the agreement, clearing a longstanding hurdle to Australian uranium exports to India.
The new framework enables Australian producers and Indian buyers to negotiate commercial supply contracts, with uranium supplied for peaceful purposes and subject to international safeguards. No specific supply volume or commercial contract has yet been announced.
Australia is particularly important because of the size of its uranium resource base.
The country produced around 4,600 tonnes of uranium in 2024, making it the world’s fourth-largest producer.
World Nuclear Association data show that Australia accounted for around 28 per cent of the world’s identified recoverable uranium resources in 2023, amounting to about 1.67 million tonnes at costs of up to $130 per kg of uranium.
The development marks the operationalisation of a process that began more than a decade ago. Australia had earlier restricted uranium sales to countries that were party to the Nuclear Non-Proliferation Treaty (NPT), of which India is not a signatory. Canberra subsequently changed its policy towards India and signed the bilateral civil nuclear agreement in 2014.
How much uranium does India need?
Imported uranium already plays an important role in India’s civilian nuclear power programme. The World Nuclear Association estimated India’s uranium requirement at 1,884 tonnes in 2025.
Government data show that India imported 18,842.60 tonnes of uranium in different forms between 2008-09 and 2024-25 for use in safeguarded nuclear reactors.
As of April 2026, 16 nuclear reactors with a combined capacity of 6,380 megawatts (MW) were under International Atomic Energy Agency safeguards and were fuelled using imported fuel.
India’s requirement could rise substantially as the country adds nuclear capacity over the next two decades.
The country currently has 8.78 GW of installed nuclear capacity and plans to increase this to around 22 GW by 2031-32 before scaling up to 100 GW by 2047.
This means India is seeking to expand nuclear capacity more than elevenfold from its current level.
Which countries already supply uranium to India?
Photo: AI-generated image
Earlier this year, Canadian uranium producer Cameco signed a long-term agreement worth about C$2.6 billion with the Indian government to supply nearly 22 million pounds of uranium ore concentrate between 2027 and 2035.
India has also had long-term uranium supply arrangements with Kazakhstan, while Russia remains an important fuel supplier for the Russian-designed VVER reactors at the Kudankulam Nuclear Power Plant in Tamil Nadu.
Widening the pool of suppliers can help India manage geopolitical and supply risks while ensuring fuel availability as more reactors come online.
Why does India continue to import uranium?
Imports supplement domestic uranium production and are particularly important for reactors placed under international safeguards.
India’s nuclear strategy also involves a longer-term effort to reduce dependence on imported uranium through its three-stage nuclear power programme, which seeks to make greater use of the country’s domestic uranium and thorium resources.
For the near- and medium-term expansion of the reactor fleet, however, adequate imported fuel remains important.
How is India expanding its nuclear power fleet?
The first two units based on the 700 MWe design at Kakrapar in Gujarat are already operational, while a fleet programme involving 10 additional reactors covers projects at sites including Kaiga, Gorakhpur, Chutka and Mahi Banswara.
India is also developing indigenous small modular reactors (SMRs), with the government targeting the deployment of at least five units by 2033.
Another major policy change came with the passage of the SHANTI Act in December 2025, which provides a framework for greater private participation in the civil nuclear sector.
Eligible private companies will be able to seek licences to develop and operate nuclear facilities once the implementing rules are notified. Strategic activities such as uranium enrichment, spent fuel management and heavy water production will remain under the Centre’s control.
The nuclear expansion comes as India’s electricity requirement continues to rise. Peak power demand reached 270.20 GW in July 2026, close to the all-time peak of 270.82 GW recorded in May.
For India, the combination of renewed access to established suppliers and the opening of new commercial routes such as Australia could become increasingly important as the country seeks to secure enough fuel for one of the world’s most ambitious nuclear power expansion programmes.
