India and Canada are set to reset their diplomatic and economic ties as Canadian Prime Minister Mark Carney arrives in India this week, marking the first stop of his Asia-Pacific tour. The visit aims to boost bilateral trade, strengthen energy partnerships, and mend relations strained since 2023 over Canadian allegations of Indian involvement in the killing of a Sikh separatist leader—claims New Delhi has strongly denied.
Carney will begin his visit in Mumbai, India’s financial hub, before traveling to New Delhi for talks with Prime Minister Narendra Modi. Discussions will focus on “ambitious new partnerships in trade, energy, technology, artificial intelligence, talent, culture, and defence,” according to Carney’s office.
Trade is a key priority. India is Canada’s seventh-largest trading partner, with annual two-way goods and services trade exceeding $21 billion. Last year, both nations agreed to resume negotiations for a free trade agreement aimed at reaching $50 billion by 2030. Over 600 Canadian companies operate in India across various sectors, including IT, banking, and healthcare sciences. India primarily exports pharmaceuticals, gems, jewellery, and seafood to Canada.
Energy cooperation is also high on the agenda. India, the world’s most populous nation with 1.4 billion people, aims to expand its nuclear power capacity from 8 to 100 gigawatts by 2047 and is exploring long-term uranium supply agreements with Canada, which holds significant reserves of rare-earth metals. A multi-billion-dollar uranium deal is reportedly under discussion.
Additionally, Canada is keen to reduce its energy export dependence on the United States, making India an attractive alternative partner. The visit signals a mutual desire to strengthen strategic ties amid shifting global trade dynamics and uncertainties surrounding US tariff policies under President Donald Trump.
