As a member of NSG, Canada gets a vote on whether to accept an agreement between the US and India to resume trading of civilian nuclear technology and materials.

"Canada is considering the proposed exemption for India from the Nuclear Suppliers Group guidelines in accordance with Canadian interests and principles," said Bernard Nguyen, a spokesperson at the Foreign Affairs Department.

But he also stressed Canada hadn't retreated from a decision to sever its nuclear ties with India, which has not signed the nuclear non-proliferation treaty, in the 1970s after New Delhi conducted its first nuclear test.

"Canada's current nuclear non-proliferation policy and multilateral commitments prohibit nuclear cooperation with India, at this time," Nguyen said.

Industry officials say the government has hinted it was only a matter of time before it lifted its moratorium, opening the door for Canada's nuclear industry to the multi-billion dollar market in India that will have massive energy needs in the future because of rapid economic growth, the National Post reported.

"Our understanding was that once things had cleared with the US, then there was the potential for the Indians to come to Canada or even other countries to have similar discussions," said Martyn Wash, president of the Organization of CANDU Industries.

"That's what we were led to believe," he said.

Earlier this month, India's High Commissioner to Canada R L Narayan had said his country hadn't formally approached the Canadians, but that it hoped to build on an agreement in principle that was approved under former Liberal Prime Minister Paul Martin in September, 2005, to expand nuclear cooperation between the two countries.