The agreement is reportedly likely to be part of a broader nuclear cooperation effort between Ottawa and New Delhi

India and Canada finalizing a $2.8 billion deal on uranium supplies in another signal of warming ties between the countries, which suffered diplomatic tensions for two years, the Globe and Mail reported on Monday.

The deal, under which Canada's Cameco Corp would supply uranium to India, could run for ten years and form part of broader nuclear cooperation between New Delhi and Ottawa, the paper said, citing sources familiar with the matter.

On Sunday, Indian Prime Minister Narendra Modi held talks with his Canadian counterpart, Mark Carney, on the sidelines of the G20 Summit in Johannesburg. The two leaders agreed to pursue a "comprehensive economic partnership" and restart trade talks that had been suspended for two years amid a diplomatic rift.

"We appreciated the significant momentum in our bilateral ties since our earlier meeting held during the G7 Summit hosted by Canada," Modi posted on X after the meeting. "We agreed to further advance our relations in the coming months, particularly in trade, investment, technology and innovation, energy and education."

The Indian Foreign Ministry added, "Both sides reaffirmed their longstanding civil nuclear cooperation and noted the ongoing discussions on expanding collaboration, including through long-term uranium supply arrangements."

Relations between India and Canada deteriorated after the G20 Summit in New Delhi in 2023.

During a meeting with then-Prime Minister Justin Trudeau on the sidelines of the event, Modi raised concerns about the ongoing anti-India activities of extremist groups in Canada.

The relationship reached a low in October 2024, when Ottawa accused Indian diplomats of being involved in the targeting of Sikh activists in Canada, resulting in a tit-for-tat expulsion of diplomats.

During talks with Carney on the margins of the G7 Summit in June, the two agreed to reset ties.

New Delhi and Ottawa have since agreed to mutually increase staff numbers at their respective diplomatic missions.