India and Canada have announced a series of agreements, including a 10-year civil nuclear energy deal, as Prime Minister Narendra Modi and his Canadian counterpart Mark Carney met in Delhi to restore relations that had sharply deteriorated in recent years.
The two leaders agreed to deepen cooperation in nuclear energy, technology, critical minerals, space, defence and education. They also pledged to conclude a long-pending free trade agreement by the end of 2026, as both nations seek to cushion the impact of US trade tariffs and diversify economic partnerships.
Relations between the two countries had plunged after former Canadian prime minister Justin Trudeau alleged Indian involvement in the 2023 killing of Sikh separatist Hardeep Singh Nijjar on Canadian soil. India strongly rejected the accusation. The diplomatic fallout led to expulsions of diplomats and suspension of visa services, bringing ties close to a standstill.
Since taking office last year, Carney has moved cautiously to repair relations. His government has stated that it does not believe India is currently linked to violent crimes or threats in Canada, though some lawmakers and members of the Sikh diaspora dispute that assessment.
Canada’s intelligence agency, the Canadian Security Intelligence Service, reiterated recently that its threat assessment regarding foreign interference, including by India, remains unchanged. Foreign Minister Anita Anand clarified that while some officials suggested India had halted interference activities, she would not personally use that wording. However, she defended renewed engagement, saying diplomatic dialogue was necessary to make progress.
During their meeting at Hyderabad House in Delhi, Modi described the civil nuclear agreement as a landmark arrangement ensuring long-term uranium supply from Canada. He said the two countries would also collaborate on small modular reactors and advanced nuclear technologies. Modi added that India and Canada would expand cooperation in artificial intelligence, supercomputing, semiconductors and jointly host a renewable energy summit.
Carney said Canada is well positioned to meet India’s growing nuclear fuel needs and announced the launch of a strategic energy partnership. He highlighted what he called unprecedented engagement between the two governments over the past year.
On trade, Modi said both sides aim to increase bilateral trade to $50 billion and finalise a comprehensive economic partnership agreement soon. Carney expressed hope that negotiations, which have stretched on for more than a decade, could be concluded within the year.
Analysts say the renewed outreach reflects shifting geopolitical realities. Canada is looking to broaden trade links beyond the United States, while India seeks to diversify imports and reduce energy dependence on Russia.
Public opinion in Canada appears supportive of rebuilding ties. A recent Angus Reid survey found that half of respondents believe it is the right time to restore relations with India, with more Canadians expressing a favourable view of India than of the United States amid ongoing tariff tensions.
Earlier in the visit, Carney met India’s External Affairs Minister S Jaishankar to discuss advancing a forward-looking partnership. His four-day tour began in Mumbai with meetings aimed at boosting trade and investment, and will continue with stops in Australia and Japan as part of Canada’s broader strategy to expand economic cooperation in the Indo-Pacific region.
With inputs from BBC