New Delhi – A significant thaw in relations and a push for deeper economic ties marked the conclusion of Canadian Prime Minister Mark Carney’s four-day visit to India on Monday. The visit culminated in the signing of eight agreements spanning key sectors, signaling a move from “normalisation to structured expansion” in the bilateral partnership, according to officials. Central to the agreements is a commitment to finalize terms for a Comprehensive Economic Partnership Agreement (CEPA) by the complete of the year, with a goal of boosting bilateral trade to $50 billion by 2030.
The agreements reflect a mutual desire to diversify trade relationships, particularly in light of trade barriers imposed during the Donald Trump administration in the United States. Both India and Canada are actively seeking new markets and strengthening existing ones. A key component of the renewed cooperation is a CAD2.6 billion (approximately $1.9 billion) long-term uranium supply agreement, intended to bolster India’s energy security. This deal comes as India faces increasing pressure to secure reliable energy sources, as noted by experts.
Beyond energy, the discussions between Prime Minister Narendra Modi and Prime Minister Carney covered a broad range of areas, including advanced manufacturing, trade, defence, education, and critical minerals. Canadian pension funds already have substantial investments in India – totaling $100 billion, according to Modi – representing 30 percent of their Asia-Pacific portfolio. The Canadian side suggested extending the same treatment to Canadian pension funds as is currently afforded to sovereign wealth funds, a proposal Indian officials are considering.
A Reset in Relations After Diplomatic Strain
The visit represents a notable step towards repairing ties that had been strained following the killing of a Sikh separatist leader in Canada in 2023-24. Both leaders acknowledged the require for continued collaboration, particularly as “vibrant democracies” navigating an increasingly complex global landscape. The agreements announced Monday are being described by analysts as a potential “reset” in India-Canada relations, prioritizing shared strategic and economic interests.
Cooperation in critical minerals is a key focus, with agreements signed to strengthen exploration, mining, and the development of secure supply chains for clean energy technologies, electric vehicles, and advanced manufacturing. A joint pulse protein centre of excellence will be established in Kundli, further diversifying agricultural collaboration. Nine additional outcomes were also agreed upon, including the establishment of an India-Canada defence dialogue, signaling a deepening of security cooperation.
Expanding Cooperation: Energy, Defence, and Education
The strategic energy partnership launched during the visit promises to expand bilateral energy trade, encompassing liquefied natural gas (LNG), liquefied petroleum gas (LPG), crude oil, refined petroleum products, potash, and uranium. An Indian delegation is scheduled to attend the Prospectors and Developers Association of Canada (PDAC) meeting in March 2026, and a ministerial-led energy and industry delegation from India will visit Canada in the summer of 2026. The India-Canada Renewable Energy and Storage Summit is also planned for 2026.
Defence cooperation will be deepened through expanded practical military cooperation, including joint training opportunities and professional military exchanges. Security and law enforcement liaison mechanisms are also to be established. The two countries also agreed to launch a joint talent and innovation strategy, fostering collaboration in key areas of research and development.
Educational ties are also being strengthened, with 24 agreements signed between universities and institutions in artificial intelligence, healthcare, agriculture, and innovation. The India-Canada CEO Forum has been reconstituted, providing a platform for business leaders to drive economic collaboration. Canada currently hosts approximately 400,000 Indian students, a figure that is more than double the number studying in the United States and four times the number in the United Kingdom.
Visa Concerns and Future Engagement
Despite the positive momentum, Indian officials acknowledged a recent Canadian policy capping non-permanent visa holders at 5 percent of the population, citing pressure on the job market and public services. This policy could potentially affect Indians seeking to live and work in Canada. However, the overall tone of the visit was optimistic, with a commitment to institutionalize four reciprocal, ministerial-led trade and investment engagements – two visits to Canada and two to India – accompanied by business delegations.
Finance Minister Nirmala Sitharaman and Commerce and Industry Minister Piyush Goyal are expected to visit Canada later this year, and a finance ministers’ economic and financial dialogue is also scheduled. This visit marks Carney’s first to India since assuming office in March and the first bilateral visit to India by a Canadian prime minister since 2018.
Discussions also touched upon the escalating situation in West Asia, with both leaders emphasizing the importance of dialogue and diplomacy and the need to avoid targeting civilians. As P Kumaran, secretary (east) in the Ministry of External Affairs, stated at a media briefing, the focus was on finding peaceful resolutions to the conflict.
Looking ahead, the focus will be on finalizing the terms of reference for the CEPA and working towards the $50 billion trade target by 2030. The upcoming ministerial visits and planned summits will provide further opportunities to strengthen the partnership and address remaining challenges. The success of these initiatives will depend on continued commitment from both sides and a willingness to navigate the complexities of the global economic landscape.
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