Prime Minister Mark Carney’s visit to India marks the most consequential step in years to rebuild Canada–India relations after the diplomatic rupture in 2023 over allegations linking Indian agents to the killing of a Canadian Sikh activist.

The visit signals a deliberate shift from crisis management to economic statecraft.

In Mumbai, Carney announced that Canada aims to conclude a Comprehensive Economic Partnership Agreement (CEPA) with India by the end of this year, with the goal of doubling two-way trade by 2030. The message was pragmatic: the two countries may not always agree, but engagement must continue.

From rupture to reset

Canada-India relations deteriorated sharply in September 2023, leading to diplomatic expulsions, reduced staffing and suspended trade negotiations. For much of the past two years, the relationship was defined by security tensions and mutual distrust.

The first signs of stabilization came at the 2025 G7 Summit in Kananaskis, Alta., when Carney’s invitation to Prime Minister Narendra Modi signalled a diplomatic breakthrough. High commissioners were reinstated and ministerial channels reopened. Carney’s India visit suggests the reset is moving from symbolism to implementation.

The logic is clear. Canada’s heavy trade dependence on the United States has become riskier amid tariff threats and political volatility. Diversification is no longer aspirational; it’s strategic.

India, as one of the world’s fastest growing major economies and an increasingly central figure in global supply chains, offers scale and long-term........

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