Canada and India Forge Major Trade Deals During Carney's Diplomatic Visit
Canada-India Trade Deals During Carney Visit

Prime Minister Mark Carney's significant trade mission to India this week is poised to formalize a comprehensive range of agreements, marking a substantial diplomatic reset between the two nations. According to Dinesh Patnaik, India's high commissioner to Canada, the visit will unlock immense opportunities across multiple sectors, including nuclear power, oil exports, and critical minerals.

Expanding Economic Cooperation

The agenda for Carney's trip is described as "immense," with potential cooperation agreements covering research, artificial intelligence, quantum computing, and education. A key expected outcome is a deal to expand Canada's uranium shipments to India, supporting the Asian nation's nuclear energy ambitions. Additionally, India is actively seeking to purchase Canadian heavy crude and other energy products, while exploring investments in infrastructure such as pipelines and terminals.

Diplomatic Reset After Tensions

This visit represents a major shift in Canada-India relations, which were severely strained just a year ago. In 2024, Canada expelled six Indian officials over allegations of government-linked campaigns of violence and intimidation against Canadian citizens. The situation escalated after former Prime Minister Justin Trudeau claimed there were credible allegations of India's involvement in the murder of a Sikh activist in British Columbia.

Since Carney assumed office, the relationship has undergone what Patnaik calls a "total reset." He emphasized that both countries, as the world's largest democracies by size and population respectively, are natural partners who must work together. "We are not school children with a single issue," Patnaik stated, highlighting the move toward a constructive partnership grounded in mutual respect.

Trade Mission Details and Future Prospects

Carney departed for India on February 26 before continuing to Australia and Japan, underscoring his trade-driven foreign policy approach. The Indian Ministry of External Affairs noted that the visit comes at a crucial juncture for normalizing bilateral relations, with both leaders committed to pursuing a balanced partnership.

Notably, Carney and Indian Prime Minister Narendra Modi agreed in November to resume negotiations toward a free-trade agreement, which Patnaik believes could be signed within a year. Despite previous unsuccessful attempts, he pointed to India's recent massive pact with the European Union as evidence of shifting momentum, driven by strong political intent and changing global trade dynamics, including U.S. tariff policies.

This diplomatic and economic re-engagement signals a new chapter in Canada-India relations, with far-reaching implications for trade, energy security, and technological collaboration.