India and Canada Target Year-End Trade Agreement as Leaders Move to Rebuild Strategic Ties
India and Canada have set their sights on finalizing a comprehensive free trade agreement before the close of the year, Canadian Prime Minister Mark Carney announced during his maiden official trip to New Delhi.
The visit signals a renewed effort by both nations to overcome recent diplomatic strains and restore momentum to their economic partnership.
Appearing alongside Prime Minister Narendra Modi, Carney emphasized the shared objective of strengthening commercial engagement.
Modi stated that both governments are working toward expanding bilateral trade to $50 billion by 2030 — a significant leap from nearly $9 billion recorded in 2024–25.
Officials confirmed that both sides have settled the framework for negotiations on a broad-based economic partnership agreement. The move is expected to pave the way for deeper collaboration across multiple sectors.
Energy cooperation featured prominently in the discussions. The two countries finalized a $2.6 billion uranium supply arrangement and agreed to collaborate on the development of small modular reactors and next-generation nuclear technologies.
Modi described the uranium accord as a landmark agreement ensuring a steady, long-term supply for India’s civil nuclear energy program.
Under the deal, India’s government and Canadian mining company Cameco will work together to secure uranium shipments aimed at supporting India’s nuclear expansion plans and strengthening clean, dependable base-load power generation, Carney noted.
Bilateral relations had sharply declined in 2023 when then Canadian Prime Minister Justin Trudeau alleged Indian involvement in the killing of a Sikh separatist on Canadian soil — claims New Delhi firmly dismissed as baseless. The fallout led to diplomatic expulsions and a suspension of trade talks.
Carney’s four-day visit is widely viewed as an attempt to repair ties and chart a fresh course forward.
Both nations are also seeking to reduce reliance on the United States amid tariff uncertainties and to enhance cooperation in clean energy, critical minerals, and agricultural supply chains.
India recently concluded a free trade agreement with the European Union in January and has temporarily halted discussions with the United States on a proposed trade deal.
Negotiations with Washington are expected to resume once greater clarity emerges following the annulment of tariffs introduced under former President Donald Trump.
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