The Pulse | Diplomacy | South Asia

Canada-India Relations Stabilize With PM Carney’s Visit

The two sides sealed a $1.9 billion commercial deal for long term supply of uranium to support India’s civilian nuclear energy program.

Canadian Prime Minister Carney at the launch of the Canada-India Talent and Innovation Strategy, which includes 13 new university partnerships, at New Delhi, India, Mar. 1, 2026.

India and Canada concluded eight agreements and a slew of other pacts spanning trade, energy, agriculture and space, during the visit of Canadian Prime Minister Mark Carney to India between February 27 and March 2.

Relations between the two countries were mired in bitter recrimination until recently, and the pacts signed during Carney’s visit, though mainly preliminary in nature, mark a significant step forward on the road to normalization of ties.

Carney’s visit came at a time when India and Canada are looking to diversify their partnerships in an increasingly uncertain world, rocked by turbulence triggered by U.S. President Donald Trump’s unilateral tariffs and worsened by several ongoing military conflicts.

“A strong, resilient, and forward-looking partnership between two vibrant democracies contributes meaningfully to mutual prosperity and to advancing shared global priorities,” the Canada-India joint statement said.

“India is the fastest-growing major economy and a powerhouse of global commerce and technology. In a rapidly changing world, Canada and India are transforming their economies to be more diversified, more independent, and more resilient,” Carney said in a statement. “Our strategic partnership, and the speed at which we are working to unleash its potential in energy, talent, and AI, is the result of two confident, ambitious nations who want to build the future, together.”

A key takeaway of Carney’s visit was an approximately US$1.9 billion (CA$2.6 billion) commercial deal between the Saskatoon-based Cameco and India’s Department of Atomic Energy for the long-term supply of uranium. This is aimed at supporting India’s civil nuclear energy generation, clean energy transition objectives and long-term energy security, the joint statement said.

This was Carney’s first bilateral visit to India since taking office last year. It follows his comments at the World Economic Forum at Davos in January, where he spoke of a “rupture in the world order,” and warned that “middle powers must act together, because if we’re not at the table, we’re on the menu.”

With both Canada and India at the receiving end of U.S. President Donald Trump’s punitive tariffs and threats, the two countries announced their decision to conclude a Comprehensive Economic Partnership Agreement (CEPA) covering goods and services this year. “Once concluded, the CEPA will significantly strengthen India–Canada economic engagement and accelerate progress toward achieving the bilateral trade target of  $50 billion by 2030,” a second Indian statement said. Bilateral trade stands at $10 billion at present.

A comprehensive trade framework “would serve as a durable economic anchor for the partnership,” the Canada-India joint statement said, while a readout from Carney’s office said “strong, stable cooperation” in trade was “foundational” to the Canada-India strategic partnership. A reconstituted Canada-India CEOs Forum will “identify new opportunities in trade, investment, innovation, and supply chain resilience, and to provide actionable recommendations to support CEPA negotiations and broader economic objectives,” the joint statement added.

Carney and Modi also greenlighted the Finance Ministers’ Economic and Financial Dialogue that will address subjects like instant payments, cross-border remittances, and merchant payments. This is expected to boost bilateral trade, tourism, education, remittances, and growth for small and medium enterprises in both countries.

Two exploratory pacts to intensify cooperation on critical minerals and energy sources were also reached. A new Strategic Energy Partnership that provides for collaboration on clean energy was announced, under which Canada will supply India with LPG and LNG. While India’s purchase of discounted Russian oil drew a steep 25 percent tariff from Washington last year, Canada is looking for new energy partners in the context of Trump’s threats to cut fuel sourcing from it.

Cooperation in clean energy, agriculture, and academics, besides exploring ways to integrate AI into space and aerospace technologies, were among the other initiatives agreed upon.

Expansion of military cooperation through joint training and exchanges, a new Maritime Security Partnership in supply chain resilience, the........

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