Canadian Prime Minister Mark Carney concluded a four-day visit to India on Monday following talks with Prime Minister Narendra Modi. The visit resulted in eight agreements designed to move the bilateral partnership toward “structured expansion” across sectors including advanced manufacturing, nuclear energy, trade, defence, education, and critical minerals.
Strengthening Economic Ties
A key outcome of the discussions was the finalisation of terms of reference for a Comprehensive Economic Partnership Agreement (CEPA). If successful, the CEPA aims to increase bilateral trade to $50 billion by 2030. A CAD2.6 billion (approximately $1.9 billion) long-term uranium supply agreement was also secured.
Both nations have been seeking to diversify trade relationships, particularly in the wake of tariffs imposed by the previous US administration. Discussions also covered the situation in West Asia, with both leaders emphasizing the importance of dialogue and avoiding civilian casualties.
Expanding Cooperation
Beyond trade, agreements were reached to bolster cooperation in critical mineral exploration and mining, energy collaboration, and the establishment of a joint pulse protein centre of excellence in Kundli. Nine additional outcomes were identified, including the creation of an India-Canada defence dialogue. The two countries also agreed to launch a joint talent and innovation strategy.
Canada acknowledged capping non-permanent visa holders at 5 per cent of its population due to domestic pressures. Twenty-four agreements were signed between universities and institutions focusing on artificial intelligence, healthcare, agriculture, and innovation. The India-Canada CEO Forum was also reconstituted.
Four reciprocal trade and investment engagements, including visits to both Canada and India with accompanying business delegations, will be institutionalized. A finance ministers’ economic and financial dialogue is scheduled for later this year, with visits by India’s Nirmala Sitharaman and Piyush Goyal to Canada anticipated.
This visit marked Carney’s first to India since taking office in March and the first bilateral visit to India by a Canadian prime minister since 2018. Current two-way annual trade stands at approximately $13 billion.
Frequently Asked Questions
What was the primary focus of the discussions between Prime Minister Modi and Prime Minister Carney?
The primary focus was on strengthening the bilateral partnership through expanded cooperation in areas such as trade, energy, defence, and innovation, with a goal of increasing bilateral trade to $50 billion by 2030.
What agreements were signed regarding energy cooperation?
A strategic energy partnership was launched with potential for expanded bilateral energy trade. A new critical minerals partnership was also signed, covering development, processing, and secure supply chains for clean energy, electric vehicles, and advanced manufacturing.
What was discussed regarding the situation in West Asia?
Both leaders expressed concern about the escalating situation in Iran and emphasized the importance of dialogue and diplomacy to resolve underlying issues, while also stressing the need to avoid targeting civilians.
As India and Canada move forward with these agreements, what challenges and opportunities might shape the future of their economic and strategic relationship?
