New Delhi, July 9, 2026
In a significant shift from the past, Canberra and New Delhi have operationalised a long-pending agreement, with Australia now agreeing to export uranium to India for peaceful civilian use.
The finalisation of an administrative arrangement for the India-Australia Civil Nuclear Agreement took place during Prime Minister Narendra Modi’s visit, the second leg of his three-nation tour.
At the 3rd India-Australia Annual Summit in Melbourne on Thursday, PM Modi and Australian Prime Minister Anthony Albanese finalised the administrative arrangement needed to implement the Agreement signed in 2014.
While the 2008 Nuclear Suppliers Group waiver allowed India to buy uranium from member countries, the agreement with Australia had set the legal framework. But Canberra refused to sell uranium to India because New Delhi is not a signatory to the Nuclear Non-Proliferation Treaty (NPT).
Australia, as one of the signatories, had maintained that uranium exports would be restricted to treaty parties. Its position remained unchanged despite growing strategic ties with India even under the Congress-led United Progressive Alliance (UPA) government.
Observers point out several factors that contributed to Canberra’s growing confidence towards New Delhi of late. Among the principal reasons cited is India’s consistent effort to project itself as a responsible nuclear power committed to the peaceful use of atomic energy.
Successive India-Australia engagements further strengthened strategic trust, while the Narendra Modi government’s emphasis on responsible global conduct further reinforced this perception.
India’s foreign policy and PM Modi’s diplomatic outreach helped reassure Canberra that uranium imported from Australia would be used solely for civilian purposes under international safeguards, analysts observed.
Additionally, India’s repeated emphasis on dialogue and peaceful resolution of international conflicts, including its calls for peace in the Russia-Ukraine conflict and the Middle East, was viewed by many as reinforcing its image as a responsible global stakeholder.
Meanwhile, India’s participation in the Quad grouping with Australia, the United States, and Japan also played an important role in deepening mutual confidence. During Quad engagements, India consistently presented its strategic vision as one focused on maintaining peace, ensuring a free and open Indo-Pacific, and avoiding armed confrontation.
Sources familiar with the diplomatic engagement cite such interactions as having helped Australian leaders better understand India’s security outlook and long-term strategic priorities.
Canberra also closely monitored India’s record of adherence to international commitments regarding civilian nuclear cooperation. India’s compliance with IAEA safeguards and its continued separation of civilian and military nuclear facilities contributed to building confidence that Australian uranium would be used exclusively for peaceful purposes.
Another important consideration was India’s rapidly growing energy demand. As India pursues its vision of becoming a developed nation by 2047 under the “Viksit Bharat” roadmap, clean and reliable energy sources have become increasingly important. Nuclear power is expected to play a larger role in India’s future energy mix, making access to uranium essential for expanding civilian nuclear power generation.
Australia’s vast uranium reserves made it a natural partner in meeting this requirement. Australia reportedly has around 28 per cent of the world’s uranium resources, and exports all of it. Canberra does not operate nuclear power plants, nor does it possess nuclear weapons. This resource is important for India, which aims to install 100 gigawatts of nuclear power by 2047 to help meet its clean energy targets. Currently, nuclear accounts for only three per cent of India’s electricity.
India’s firm stand against illicit nuclear proliferation, including its consistent raising of concerns over Pakistan’s clandestine nuclear activities in international forums such as the United Nations, observers add, could have strengthened New Delhi’s credentials as a responsible stakeholder in the global non-proliferation architecture.
Thus, strategic convergence, expanding defence and economic ties, India’s growing global role, confidence built through the Quad, adherence to international safeguards, and New Delhi’s increasing energy requirements all contributed to creating the conditions for Canberra to revisit its earlier policy.
India having met all safeguards and administrative conditions, both governments now see civilian nuclear trade as a strategic, commercial and climate-policy opportunity. Australia sees a stable, long-term market for its uranium as India scales up civilian nuclear capacity; India needs reliable fuel to meet its clean-energy ambitions.
Canberra framed the deal as built on “trust and shared interests”. It strengthens its strategic and energy cooperation with one of the world’s fastest-growing energy markets while ensuring all exports remain under international safeguards for peaceful civilian use.
Safeguards and administrative arrangements were finalised at the recent summit, providing the legal and technical basis for uranium shipments under IAEA oversight. Leaders described the move as operationalising a long-pending agreement. For India, the agreement diversifies long-term fuel supplies as its reactor fleet expands.(Agency)
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