India and Canada Agree Series of Deals as Carney and Modi Reset Ties

Published: 2 March 2026 . The English Chronicle Desk.
The English Chronicle Online

India and Canada agreed on a suite of strategic economic and diplomatic measures during Canadian Prime Minister Mark Carney’s official visit to India, marking a significant reset in ties with Prime Minister Narendra Modi. The talks in New Delhi and progress on long-stalled cooperation reflect intentions to deepen bilateral relations after years of diplomatic strain.

At the centre of the outcomes was a new $2.6 billion uranium supply agreement to support India’s expanding nuclear energy requirements. The deal — one of the headline achievements of the visit — is intended to secure a long-term uranium supply from Canadian sources for India’s nuclear power reactors, reinforcing Canada’s role as a reliable energy partner.

Both leaders also moved forward on negotiations for a Comprehensive Economic Partnership Agreement (CEPA), with the aim of concluding the trade pact by the end of 2026. Officials framed the prospective agreement as a framework to expand bilateral trade from its current levels toward a $50 billion target by 2030, reflecting ambitions to diversify economic linkages and complement broader strategic interests.

Beyond energy and trade, the two sides agreed to collaborate on critical minerals, another key component of global supply chains that support clean energy and advanced manufacturing. Critical minerals cooperation is viewed as complementary to trade negotiations and part of a broader push for shared economic opportunity.

The visit also saw renewed emphasis on strategic dialogues — including plans to establish a formal India-Canada Defence Dialogue centered on defence cooperation, regional security, maritime domain awareness and intelligence sharing. Such institutional arrangements are expected to solidify long-term cooperation after years of diplomatic tensions.

Talks during the week extended into sectors including clean energy collaboration and technology. Leaders discussed cooperation in areas like small modular reactors (SMRs) and advanced nuclear technologies, artificial intelligence, quantum computing and educational exchanges, embracing diverse areas of innovation as part of future economic ties.

The reset in relations follows a period of stiffness that followed 2023 when Ottawa accused New Delhi of involvement in the killing of a Sikh separatist figure in Canada — a charge India repeatedly denied. That episode led to suspended visa services and diplomatic expulsions, and it strained cooperation across multiple dimensions. Carney’s visit — the first bilateral engagement at this level since he took office two years ago — signals both sides’ willingness to move beyond past disputes and focus on mutually beneficial initiatives.

Canadian officials have framed the renewed engagement as part of a broader strategy to diversify trade away from an overreliance on the United States, while Indian leaders describe the deepened cooperation as consistent with New Delhi’s expanding global economic and geopolitical footprint. Analysts note that the successful advancement of these agreements could underpin a more stable and comprehensive partnership between the two democracies.

The agenda also included discussions on food security, agriculture cooperation, environmental issues, people-to-people ties, and cultural exchange initiatives, reflecting a broadening of bilateral cooperation beyond traditional trade and energy sectors.

The leaders agreed that formal negotiations on CEPA and mechanisms to monitor and manage cooperation in priority sectors would continue throughout the year, with both sides optimistic about concluding key agreements and surpassing historical benchmarks in economic engagement by the end of 2026.

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