India and Canada have launched detailed trade talks that signal a thaw in a once frosty relationship, seeking to double bilateral commerce to $50 billion by 2030.
The announcement comes after a productive meeting between Prime Minister Narendra Modi and newly elected Canadian Prime Minister Mark Carney at the G20 Summit in Johannesburg.
With trade in goods and services reaching $23 billion in 2024, both governments have unveiled plans to build a Comprehensive Economic Partnership Agreement.
This initiative highlights not just renewed diplomatic engagement but a strategic economic realignment focused on new technologies and clean energy.
What sparked renewed India-Canada trade talks?
The two countries experienced significant diplomatic strain in 2023 following allegations against Indian agents, leading to a sharp drop in cooperation and a scaling back of official contacts.
Only after both sides agreed to restore high-level engagement in June did dialogue resume in earnest.
A turning point arrived at the G7 Summit in Kananaskis, where Modi and Carney pledged to bring back their high commissioners and revive long-stalled trade discussions.
Minister Piyush Goyal stated that the agreement demonstrates deepening trust and a shared ambition to build resilient economic bridges.
Did you know?
Canada has the world’s third largest uranium reserves, a key asset in nuclear trade partnerships.
How are minerals and clean energy shaping negotiations?
Critical minerals, especially those essential for advanced manufacturing and technology, anchor the new economic partnership. India’s growing role in artificial intelligence and data-driven sectors finds support in Canada’s resources and expertise.
Energy remains another pillar. India and Canada are discussing expanded civil nuclear cooperation, including uranium supply contracts that would bolster India’s 500-gigawatt power grid, with 250 gigawatts dedicated to clean energy. Both countries see collaboration here as vital for meeting green transition goals.
Why did past diplomatic tensions nearly derail progress?
Relations deteriorated sharply after former Canadian leader Justin Trudeau’s 2023 claims linking Indian agents to an attack on a Canadian Sikh separatist. India firmly rejected the accusations, and diplomatic activity slowed.
By late 2024, back-channel talks and a change in Canada’s leadership to Mark Carney enabled a diplomatic reset.
The return of high commissioners in August and ongoing ministerial dialogues paved the way for new momentum.
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What do leaders hope for with the $50B trade target?
Both Modi and Carney view a comprehensive trade agreement as a key driver for job creation, technology transfers, and stronger supply chains.
Carney has publicly committed to doubling Canada’s non-U.S. exports over the decade and sees India as a reliable long-term partner.
India, meanwhile, is seeking greater access for its services and rising STEM talent, positioning itself as a global tech hub.
Goyal emphasized the agreement’s ambition, underlining that increased trade would benefit millions in both economies.
How does this deal set the stage for future cooperation?
The focus on CEO forums, expanded nuclear and mineral ties, and a commitment to regular leadership exchanges suggest a broader, multi-faceted partnership in the making.
Resetting relations, according to both capitals, is about more than trade. Leaders plan to reactivate corporate dialogues in early 2026 and are preparing groundwork for even deeper collaboration in areas like quantum computing and data centers.
Successful negotiations on CEPA could open doors to wider cooperation in regional and global forums as well.
The India-Canada commercial relationship now enters a pivotal phase, with high expectations and substantial economic promise.
As both nations pursue technology-driven growth and sustainable energy solutions, their renewed partnership could serve as a model for overcoming diplomatic divides in the global era.
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