The One Mineral India Needs For Its Nuclear Dream? PM Modi Just Got It From Australia

Last Updated:July 09, 2026, 14:13 IST

Australia possesses nearly 28 per cent of the world’s known uranium reserves, making it the single-largest holder of the mineral globally

Prime Minister Narendra Modi’s visit to Australia produced one of the most consequential agreements in the India-Australia relationship: a long-awaited pact that will pave the way for Australia to supply uranium for India’s civilian nuclear programme.

Calling it an “important agreement", PM Modi said Australian uranium would give India’s clean energy goals “fresh momentum", while Australian Prime Minister Anthony Albanese said the arrangement would help India expand its non-fossil fuel power capacity. The uranium exports will be governed by safeguards of the International Atomic Energy Agency (IAEA) and will be used exclusively for peaceful purposes.

At first glance, the agreement may appear to be another energy deal. In reality, it could play a critical role in India’s ambitious plan to dramatically expand nuclear power over the next two decades.

Why Does India Need More Uranium?

India is the world’s fastest-growing major economy and one of its biggest consumers of electricity. Power demand is expected to rise sharply as manufacturing expands, electric vehicles become more common, artificial intelligence-driven data centres proliferate and living standards improve.

Today, coal still accounts for nearly three-fourths of India’s electricity generation. To meet its climate commitments while ensuring uninterrupted power supply, India wants to diversify its energy mix and nuclear power is a key pillar of that strategy.

The government has announced an ambitious target of expanding nuclear power generation capacity from around 8 GW today to 100 GW by 2047, making it one of the largest nuclear expansion programmes in the world. That would require dozens of new reactors and, crucially, a reliable supply of uranium. Securing long-term uranium imports was a major objective of the prime minister’s Australia visit.

Why Is Australia So Important?

Australia possesses nearly 28 per cent of the world’s known uranium reserves, making it the single-largest holder of the mineral globally.

For years, however, Australian uranium could not reach India because Canberra had long maintained a policy of exporting uranium only to countries that had signed the Nuclear Non-Proliferation Treaty (NPT).

India, which never joined the NPT, remained excluded despite its growing energy needs. That changed after the India-US civil nuclear agreement and subsequent Nuclear Suppliers Group waiver in 2008, which opened the door for civilian nuclear trade.

India and Australia signed a civil nuclear cooperation agreement in 2014-15, but commercial exports have remained limited. The latest arrangement is expected to operationalise long-term uranium supplies.

How Does Uranium Help India?

Uranium is the fuel that powers nuclear reactors. Without a steady supply, even newly built reactors cannot generate electricity.

India has uranium deposits in states such as Jharkhand, Andhra Pradesh, Telangana and Rajasthan, but domestic production has historically lagged demand. As a result, India has relied on imports from countries including Kazakhstan, Canada, Russia, Uzbekistan and Namibia.

Adding Australia, a politically stable democracy with abundant reserves, diversifies India’s fuel basket and reduces dependence on a smaller group of suppliers.

What About India’s Own Uranium?

India does have uranium resources, but there are several constraints. First, domestic reserves are relatively modest compared with Australia’s. Also, many deposits contain lower-grade uranium ore, making extraction costlier. Apart from this, mining projects often face environmental and land acquisition challenges. In addition to this, India’s expanding reactor fleet is expected to require much larger fuel supplies than domestic mines alone can provide.

The Australian deal therefore complements, rather than replaces, domestic production.

How Does This Fit Into India’s Three-Stage Nuclear Programme?

India’s nuclear strategy has always been unique. Because the country has relatively limited uranium but one of the world’s largest thorium reserves, former nuclear scientist Homi Bhabha designed a three-stage nuclear programme.

Stage One: Pressurised Heavy Water Reactors (PHWRs) use natural uranium.

Stage Two: Fast Breeder Reactors (FBRs) generate more fissile material than they consume.

Stage Three: Advanced reactors will eventually utilise India’s vast thorium reserves.

India recently crossed a significant milestone by successfully commissioning its Prototype Fast Breeder Reactor, seen by experts as a major step towards long-term energy independence because it allows the country to maximise fuel efficiency and eventually unlock its thorium reserves.

Ironically, even this long-term strategy requires uranium today to fuel existing reactors and support the transition toward breeder and thorium technologies.

Why Is Nuclear Power Becoming More Important?

Unlike solar and wind energy, nuclear power generates electricity round the clock. It does not depend on sunshine or wind conditions and that makes it valuable as India seeks to reduce emissions while maintaining reliable electricity for industries and households.

Nuclear energy also produces very low operational carbon emissions, making it an important component of India’s goal of achieving net-zero emissions by 2070.

The Strategic Dimension

The agreement is about more than electricity.

India and Australia have steadily deepened ties through the Quad grouping alongside the United States and Japan. Both countries increasingly see each other as strategic partners in the Indo-Pacific amid concerns over China’s growing regional influence.

During PM Modi’s visit, the two sides also agreed to strengthen defence cooperation, build resilient critical mineral supply chains and establish a temporary Indian space-tracking facility on Australia’s Cocos (Keeling) Islands to support future space missions.

About the Author

Apoorva Misra

Apoorva Misra is a News Editor at News18.com with a keen interest in politics and current affairs. She loves uncovering fresh angles and telling stories through long-form features and explainers. Foll...Read More

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