India and Canada have sealed a series of agreements, focusing on critical mineral cooperation and a significant uranium supply deal for nuclear power, as announced by the leaders in New Delhi. The agreements, which also touch on technology and the promotion of renewable energy, come following Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney expressing optimism about the revitalized relationship between their countries.
In 2023, relations between the two nations soured after Ottawa accused New Delhi of orchestrating a lethal campaign against Sikh activists in Canada, allegations that India denied. Carney’s visit, his first to India since assuming office last year, aims to mend strained ties and enhance trade diversification beyond the United States.
Carney emphasized the increased engagement between the Canadian and Indian governments over the past year, surpassing the levels of the past two decades. This signifies not just a revival but an expansion of a valued partnership with new aspirations and strategies, as both countries pave the way for the future.
India, with its booming population of 1.4 billion, is eager to bolster its nuclear power capacity from the current eight to 100 gigawatts by 2047. Modi highlighted a groundbreaking agreement for long-term uranium supply for civil nuclear energy, along with collaboration on small modular reactors and advanced reactors. Carney mentioned the launch of a strategic energy partnership, including a significant CAN$2.6 billion ($1.9 billion) uranium supply agreement to support India’s nuclear goals.
Canada, being a dependable supplier of liquefied natural gas (LNG) from its west coast, is well-placed to aid India in securing critical minerals for its manufacturing, clean-tech, and nuclear facilities. The two nations have also agreed to resume talks on a proposed free-trade agreement, aiming to achieve a target of $50 billion in bilateral trade, creating new investment prospects and job opportunities.
Carney expressed the intention to finalize an ambitious agreement by the year’s end to enhance trade certainty and reduce barriers, stressing the renewal of security cooperation through a new defense partnership. Canadian pension and wealth funds have already injected $73 billion into India, underscoring the growing economic ties between the two nations.
Before Carney assumed office, Ottawa accused the Indian government of involvement in the 2023 killing of Hardeep Singh Nijjar, leading to strained relations. However, ties have improved since Carney’s tenure began in March 2025, with diplomatic relations being restored. Carney’s upcoming visits to Australia and Japan form part of Canada’s broader effort to expand its economic partnerships and reduce its reliance on the US economy.
The article also highlights concerns around US trade policies and their potential impact on the Canadian economy, as Canada seeks to diversify its trade relations beyond its southern neighbor amid uncertainties in global trade dynamics.
