India and Canada have announced a series of agreements, including a 10-year civil nuclear energy deal, aimed at restoring ties strained by diplomatic tensions in recent years.
The understandings were reached during talks in New Delhi between Indian Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney, who is on an official visit to India. According to reports, both leaders emphasized the long-standing relationship between the two countries, shared democratic values, and strong people-to-people connections.
Following their meeting at Hyderabad House, Modi described the nuclear agreement as “historic,” stating that the two sides had agreed on long-term uranium supply arrangements for civilian nuclear energy. He also said India and Canada would cooperate on small modular and advanced reactors. Calling the two countries “natural partners in technology and innovation,” Modi highlighted plans to deepen collaboration in artificial intelligence, supercomputing, semiconductors, and renewable energy, including hosting a joint clean energy conference.
Carney said Canada is well positioned to supply nuclear fuel to energy-hungry India and confirmed the launch of a strategic energy partnership. He described recent diplomatic engagement between the two governments as more intensive than at any time in the past two decades.
The two sides also agreed to conclude a long-pending Free Trade Agreement by the end of 2026. Modi said the goal is to raise bilateral trade to $50 billion and fast-track a comprehensive economic partnership. Carney expressed hope that an ambitious deal, under intermittent discussion for nearly 15 years, could be finalized by year’s end.
Relations had deteriorated sharply in 2023 after then-Prime Minister Justin Trudeau alleged Indian involvement in the killing of Sikh separatist leader Hardeep Singh Nijjar on Canadian soil. India strongly denied the accusations. The dispute led to diplomatic expulsions and suspension of visa services, while legal proceedings against four accused individuals remain ongoing in Canada.
Since taking office, Carney has sought cautious re-engagement with India, although concerns about foreign interference persist. Canada’s intelligence agency, the Canadian Security Intelligence Service, has previously listed India among countries involved in espionage and foreign interference, alongside Russia, China, and Iran.
Despite domestic debate within Canada, recent surveys suggest that most Canadians support renewed engagement with India. Analysts say Carney’s outreach reflects shifting geopolitical realities and Canada’s effort to diversify trade and investment partnerships. For India, closer ties with Canada offer an opportunity to expand energy sources and reduce reliance on traditional suppliers.
