India and Canada Announce Major Agreements to Reset Bilateral Ties
India and Canada have declared a series of agreements, including a 10-year nuclear energy deal, following a meeting between their prime ministers in Delhi aimed at resetting relations that had deteriorated due to diplomatic tensions.
Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney also reached accords in sectors such as technology, critical minerals, space, defence, and education.
Carney stated that both nations agreed to finalize a free trade agreement, which has been under negotiation for years, by the end of 2026. Both countries aim to minimize their vulnerability to punitive US trade tariffs.
Efforts to Repair Strained Diplomatic Relations
Under Carney's leadership, the two governments are working to mend ties that were severely strained after his predecessor accused India of involvement in the 2023 assassination of Sikh separatist Hardeep Singh Nijjar on Canadian soil.
India strongly denied the allegations made by then-Prime Minister Justin Trudeau.
Trade and diplomatic relations nearly came to a halt as both countries expelled each other's diplomats and suspended visa services. Canada hosts a large expatriate Indian community.
Since Carney assumed office last year, the relationship has been cautiously restored, aided by his government's position that it currently does not believe India is connected to violent crimes or threats on Canadian soil.
However, some voices in Canada have challenged this stance, including a Liberal Member of Parliament from Carney's own party and members of the Sikh diaspora, who assert they continue to face targeting by India.
Canadian Officials Address Foreign Interference Concerns
Following Carney's meeting with Modi on Monday, Canada's Foreign Minister Anita Anand distanced herself from remarks by a senior Canadian official who claimed India had ceased all foreign interference in Canada.
"The words of the senior official are not words that I personally would use," Anand told reporters in Delhi.
Nonetheless, Anand defended Canada's decision to re-engage diplomatically with India, stating,
"We need to have these diplomatic conversations in order to make progress."
Carney has not yet addressed Canadian media since the start of his trip. A planned news conference following his meeting with Modi was cancelled due to his tight schedule.
The legal case involving four men charged in connection with Nijjar's killing remains before the courts.
Emphasis on Long-Standing Relations and Strategic Cooperation
During talks in Delhi, both Carney and Modi highlighted the enduring relationship between India and Canada, shared objectives, and strong people-to-people connections.
Modi stated,
"In civil nuclear energy, we have reached a landmark deal for long-term uranium supply. We will also work together on small modular reactors and advanced reactors."
He described the two countries as,
"Natural partners in technology and innovation,"
and noted plans to enhance cooperation in artificial intelligence, supercomputing, and semiconductors, as well as to jointly host a renewable energy summit.
Carney remarked that Canada is well positioned to support energy-hungry India's nuclear fuel requirements and announced the launch of a strategic energy partnership between the two nations.
"There has been more engagement between the Canadian and Indian governments in the last year than there has been in more than two decades combined,"
he said, praising the progress in rebuilding relations.
Trade Ambitions and Economic Partnership
On trade, Modi expressed,
"Our target is to reach $50bn in bilateral trade. This is why we have decided to finalise a comprehensive economic partnership soon."
Carney indicated his intention to conclude the "ambitious agreement" by the end of the year. The deal has been intermittently discussed for the past 15 years, and its conclusion would mark a significant milestone.
Geopolitical and Economic Motivations Behind the Reset
Analysts suggest that Carney's decision to move beyond diplomatic tensions and extend an olive branch to India is a pragmatic response to current geopolitical shifts.
The same rationale applies to India, which is seeking to establish new trade partnerships to diversify its imports and reduce dependence on Russia for energy supplies.
Additional Meetings and Future Plans
Earlier on Monday, Carney met with India's Foreign Minister S Jaishankar to discuss charting a "forward-looking partnership."
Carney's four-day visit began in Mumbai on 28 February, where he engaged with business leaders and ministers to promote trade and investment in India.
Following the conclusion of his trip in Delhi, Carney is scheduled to travel to Australia and Japan as part of his strategy to diversify Canada's trade relations and attract new investments.
Follow India on Instagram, YouTube, X, and Facebook.
