India and Canada have announced a series of agreements, including a landmark 10-year nuclear energy deal, signaling a major reset in bilateral relations that were strained by diplomatic tensions in recent years.
Landmark Nuclear Energy Agreement
During a high-profile meeting at Hyderabad House in New Delhi, Canadian Prime Minister Mark Carney and Indian Prime Minister Narendra Modi pledged to strengthen cooperation across multiple sectors, including technology, critical minerals, space, defence, and education.
A key highlight of the talks was the nuclear energy agreement, aimed at securing a long-term supply of uranium to India. Modi said the two nations will also collaborate on small modular reactors and advanced nuclear technologies.
“In civil nuclear energy, we have reached a landmark deal for long-term uranium supply. We will also work together on small modular reactors and advanced reactors,” Modi told reporters.
Expanding Cooperation in Technology and Innovation
The leaders also discussed partnerships in technology and innovation, focusing on artificial intelligence, supercomputing, semiconductors, and renewable energy. Plans were announced to jointly host a renewable energy summit.
Trade Goals and Free Trade Deal
On trade, Carney confirmed that both governments aim to conclude a long-discussed free trade deal by the end of 2026.
“Our target is to reach $50 billion in bilateral trade. This is why we have decided to finalise a comprehensive economic partnership soon,” Modi said.
Analysts note that concluding this agreement would mark a significant milestone, as discussions have been ongoing for more than 15 years.
Diplomatic Tensions and Rebuilding Trust
The thaw in relations follows a period of diplomatic tension after Carney’s predecessor accused India of involvement in the 2023 assassination of Sikh separatist Hardeep Singh Nijjar on Canadian soil. India strongly rejected the claim, and diplomatic relations nearly ground to a halt, with both countries expelling diplomats and suspending visa services, as reported by BBC News.
Since taking office last year, Carney has sought to rebuild ties with India, emphasizing that Canada currently does not see India as linked to violent threats on its soil. However, some Canadian officials and members of the Sikh diaspora maintain concerns over ongoing foreign interference.
Canada’s Foreign Minister Anita Anand clarified her stance, distancing herself from earlier remarks by a senior official suggesting India had ceased all foreign interference in Canada.
“The words of the senior official are not words that I personally would use,” Anand told reporters.
Strengthening Strategic and Economic Partnerships
Carney’s visit included meetings with Indian Foreign Minister S. Jaishankar and business leaders in Mumbai, aiming to boost trade and investment. Following Delhi, Carney is scheduled to visit Australia and Japan as part of Canada’s strategy to diversify trade partnerships and attract new investment.
Reflecting on the diplomatic progress, Carney said,“There has been more engagement between the Canadian and Indian governments in the last year than there has been in more than two decades combined.”
The renewed partnership underscores the pragmatic approach both countries are taking in light of shifting global geopolitics. For India, diversifying trade and reducing dependence on Russian energy are key strategic priorities, while Canada seeks to strengthen economic ties in Asia and secure critical energy and technology partnerships.
