Prime Minister Mark Carney and his Indian counterpart announced Monday a “new partnership” marked by a series of multi-million dollar deals and a commitment to sign a free trade agreement by year’s end, signaling a shift away from years of strained bilateral relations stemming from allegations of Indian foreign interference.
A Reset in Relations
Following a one-on-one meeting with Indian Prime Minister Narendra Modi at Hyderabad House in Delhi, Carney stated Canada is prioritizing trade diversification. The two nations aim to more than double two-way trade to $70 billion annually by 2030, as Canada seeks to lessen its economic reliance on the United States.
Carney characterized this new direction as an “expansion of a valued partnership” with “new ambition, focus, and foresight.” Central to this strengthened relationship will be a Comprehensive Economic Partnership Agreement – a free trade deal – intended to alleviate Indian tariffs impacting Canadian exports.
Modi, in prepared remarks, praised Carney’s leadership, attributing the improved relationship to his efforts. “I credit my friend Prime Minister Carney for the growing momentum in every area of cooperation,” Modi said in Hindi. “This vision inspires us to move forward in every field. Unlocking the full potential of economic cooperation is our priority.”
Deals and Investments
The two countries signed five memorandums of understanding encompassing energy, critical minerals, technology, AI, talent, culture, and defence, totaling $5.5 billion in value. A significant component is a $2.6 billion agreement between the Government of India and Saskatoon-based Cameco to supply nearly 22 million pounds of uranium for nuclear energy generation between 2027 and 2035.
Other agreements include Mumbai-based OCT Therapies & Research expanding medicine manufacturing in New Brunswick, HCL Technologies opening new AI centres in Calgary, Mississauga, and Vancouver (increasing employment to 5,250 from 3,000), and Jubilant Pharmanova investing $155 million to triple production at a plant in Kirkland, Quebec. B.C.-based Elk Valley Resources will sell 1.2 million tonnes of coal to India.
Canadian investment in India also features, with McCain Foods committing $135 million to expand its potato-processing plant in Gujarat.
Security and Ongoing Concerns
Alongside the economic agreements, both Carney and Modi agreed to enhance bilateral cooperation on security and law enforcement, focusing on curbing illegal drug flows – particularly fentanyl precursors – and combating transnational organized crime. Carney also affirmed Canada’s commitment to addressing transnational repression.
A government official stated that Ottawa believes Indian foreign interference activity has ceased. Still, Foreign Affairs Minister Anita Anand distanced herself from this assessment, stating, “The words of the senior official are not words that I personally would use,” while still defending engagement with India.
Frequently Asked Questions
What is the goal for Canada-India trade by 2030?
The two countries have set a goal to more than double two-way trade to some $70 billion a year by 2030.
What is the value of the deals signed between Canada and India?
The memorandums of understanding signed between Canada and India are worth $5.5 billion in total.
What is the status of the free trade agreement between Canada and India?
The two sides hope to sign a Comprehensive Economic Partnership Agreement – a free trade deal – by December.
As Canada and India embark on this “new partnership,” will the focus on economic cooperation be sufficient to address lingering concerns regarding alleged foreign interference and ensure a stable, mutually beneficial relationship?
