Canada ( Mehboob Shaikh ) Prime Minister Mark Carney and Indian Prime Minister Narendra Modi on Monday unveiled an ambitious new partnership spanning energy, critical minerals, technology and talent, marking what both sides described as a reset in relations after nearly three years of diplomatic strain.
Meeting in the Indian capital, Carney and Modi committed to concluding a Comprehensive Economic Partnership Agreement (CEPA) by the end of the year, a move aimed at more than doubling two-way trade to $70 billion by 2030. The pledge follows talks between chief negotiators and the signing of terms of reference for the deal.
Canada and India are ambitious nations on confident missions to build and transform our economies, Carney said after the talks. “We will move faster, build bigger, and deliver more prosperity for our peoples by working in partnership.”
The leaders released a joint statement and welcomed five memorandums of understanding covering cooperation in energy and critical minerals, artificial intelligence, defence, and cultural exchange.
Landmark uranium deal
At the heart of the announcements is a $2.6-billion agreement between India and Saskatchewan-based Cameco to supply nearly 22 million pounds of uranium between 2027 and 2035. The long-term deal is expected to bolster India’s nuclear energy capacity and strengthen its energy security at a time of shifting global supply chains.
The two governments also launched a Strategic Energy Partnership covering liquefied natural gas (LNG), liquefied petroleum gas (LPG), uranium, solar and hydrogen. Ottawa signalled its intent to join the International Solar Alliance and upgrade to full membership in the Global Biofuels Alliance, underscoring a broader push into clean energy collaboration, including wind, biofuels and hydropower.
In addition, both countries agreed to intensify engagement on critical minerals — seen as vital to electric vehicles, battery storage and advanced manufacturing — with the goal of diversifying supply chains amid geopolitical uncertainty.
Rebuilding strained ties
The announcements represent the most significant thaw in bilateral ties since 2023, when then-prime minister Justin Trudeau said there were “credible allegations” linking Indian agents to the killing of a Sikh separatist leader in Canada — an accusation New Delhi strongly denied. The dispute triggered diplomatic expulsions and a cooling of trade discussions.
Under Carney, Ottawa has sought to rebuild engagement with India, the world’s fastest-growing major economy, as Canada faces tariff pressure and economic uncertainty from its largest trading partner, the United States.
Analysts say the renewed outreach reflects strategic calculation on both sides. India is seeking stable supplies of energy and critical minerals to sustain its industrial growth, while Canada is looking to diversify export markets and attract investment.
Beyond trade: talent and technology
Beyond energy and trade, the agreement emphasizes people-to-people ties between the two democracies. Canada is home to more than 1.8 million people of Indian origin, forming one of the largest diaspora communities in the country.
The two governments pledged to expand cooperation in higher education, space technology and artificial intelligence, as well as promote cultural exchanges aimed at deepening social and commercial links.
Following the talks, Modi said the partnership would open “new pathways of growth and innovation” for both countries. Carney described the agreement as “foundational” to a broader strategic relationship built on stable trade and shared economic ambition.
While challenges remain, the sweeping set of initiatives signals a mutual willingness to move beyond recent tensions and focus on long-term strategic priorities — energy security, resilient supply chains and technological collaboration — that could redefine India-Canada relations in the decade ahead.
