New Delhi: India and Canada on Monday unveiled a sweeping set of agreements spanning energy security, critical minerals and defence cooperation, marking a significant reset in bilateral ties. Prime Minister Narendra Modi and his Canadian counterpart Mark Carney set an ambitious target of raising annual two-way trade to $50 billion by 2030, nearly four times its current level of about $13 billion.
At the heart of the renewed partnership is a $2.6 billion agreement under which Canada will supply uranium to support India’s civil nuclear energy programme. The leaders also committed to collaborating on small modular reactors and advanced nuclear technologies, underscoring a shared push toward cleaner and more reliable energy systems.
Strategic Energy and Minerals Push
Beyond uranium, both sides signed a memorandum of understanding on critical minerals, aimed at building resilient supply chains for clean energy technologies, electric vehicles and advanced manufacturing. Canada, known for its vast reserves of rare earth elements and other strategic resources, is expected to play a key role in supporting India’s industrial and green transition goals.
Describing the energy partnership as “next-generation,” Modi said cooperation would extend across hydrocarbons, renewable energy, green hydrogen and energy storage. Carney echoed the sentiment, highlighting expanded collaboration in wind and solar power alongside hydrogen development.
Fast-Tracking Trade Pact
The two leaders agreed to expedite negotiations on a Comprehensive Economic Partnership Agreement (CEPA), which they said would unlock investment flows and create employment opportunities in both countries. Modi noted that Canadian pension funds have already invested approximately $100 billion in India, reflecting long-term confidence in the Indian economy.
The push to deepen economic ties comes as Ottawa seeks to diversify trade relationships amid strained economic links with the United States.
Defence, Technology and Education
In a sign of growing strategic trust, India and Canada announced plans to institutionalise a defence dialogue. Areas of cooperation will include defence industry partnerships, maritime domain awareness and military exchanges.
The talks also covered collaboration in critical technologies such as artificial intelligence, healthcare innovation and advanced manufacturing. In education, both sides welcomed new university partnerships and agreed to facilitate the opening of Canadian university campuses in India.
Shared Stand on Global Security
Addressing regional and global challenges, Modi said terrorism, extremism and radicalisation pose common threats requiring close coordination. The leaders also discussed the fragile security environment in West Asia, with India reiterating its support for resolving conflicts through dialogue and diplomacy.
Carney described the day’s agreements as the foundation of a durable partnership that balances economic growth with environmental responsibility.
Diplomatic Reset After Turbulence
The announcements signal a marked turnaround in relations that had deteriorated sharply in 2023 following allegations by then Canadian Prime Minister **Justin Trudeau** regarding India’s possible involvement in the killing of Khalistani separatist Hardeep Singh Nijjar. India rejected the claims, and the dispute led to reciprocal diplomatic expulsions.
Carney’s electoral victory last year paved the way for renewed engagement. Since then, both countries have reinstated high commissioners and intensified diplomatic outreach. Modi’s visit to Kananaskis for the G7 summit last June also provided an opportunity for the two leaders to initiate efforts toward rebuilding trust.
With Monday’s agreements, New Delhi and Ottawa appear determined to move beyond past frictions and shape what they described as a forward-looking partnership anchored in democratic values, economic opportunity and clean energy cooperation.
