Turnaround in India-Canada ties marked by optimism

There has been a turnaround in India-Canada relations, and given the experience of Justin Trudeau’s premiership, only a few could have imagined this even six months ago.

A little over a year after the High Commissioner in Ottawa was recalled, India and Canada have been steadily rebuilding ties with two meetings between the two prime ministers within six months. Foreign ministers also met several times this year.

At their meeting in Johannesburg on Sunday, Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney agreed to begin negotiations on the highly ambitious Comprehensive Economic Partnership Agreement (CEPA), which aims to double bilateral trade to US$50 billion by 2030. This CEPA is critical to help Indian exporters diversify as the India-US trade deal remains in balance and 50% tariffs remain in place. Canada has also had its share of ups and downs with the Trump administration.
Both India and Canada also reaffirmed their long-standing civil nuclear cooperation and noted ongoing discussions on expanding cooperation, including long-term uranium supply arrangements. Along with the Australian Prime Minister, Modi and Carney on Saturday agreed to a unique Australia-Canada-India Technology and Innovation (ACITI) partnership that will increase trilateral cooperation in critical technologies, nuclear energy, diversification of supply chains and artificial intelligence.

At their meeting on Sunday, the two leaders appreciated the renewed momentum in relations since their meeting with Kananaskis in June 2025 on the margins of the G7 Summit and the launch of the New Road Map for bilateral engagement of foreign ministers in October 2025. The two discussed cooperation in the fields of trade and investment, defence, education, space, science and technology and energy. Carney expressed his support for the Artificial Intelligence Summit, which he plans to attend in February 2026, hosted by India.

Following the return of the high commissioners in August 2025, the two leaders agreed to increase diplomatic staff levels to meet increased consular demands and strengthen people-to-people ties, including the mutual transfer of information. Carney also welcomed the progress made in law enforcement dialogue between the two countries. People familiar with bilateral relations told ET that the presence of Khalistani terrorists operating from Canadian soil is the biggest disturbance in bilateral relations and that Ottawa, which has shown needs for pragmatism during the Carney era, should not allow the K factor to sour ties once again. Canada may once again make itself attractive to Indian students and immigrants facing a backlash from the US. The two prime ministers also agreed on the importance of regular, reciprocal high-level visits, including by ministers and business figures. In this context, Canadian Export Promotion, International Trade and Economic Development Minister Maninder Sidhu also paid an official visit to India between 11-14 November.