India and Canada have taken a major step in restoring diplomatic and economic relations, signing a series of agreements including a 10-year nuclear energy deal, following high-level talks between Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney in Delhi. The agreements cover technology, critical minerals, space, defence, education, and energy, signaling a new era of cooperation after years of tension.
The two leaders confirmed plans to finalize a free trade deal by the end of 2026, aimed at reducing exposure to punitive U.S. tariffs and boosting bilateral commerce. Modi highlighted a landmark deal on civil nuclear energy, including long-term uranium supply and collaboration on small modular and advanced reactors. Both countries will also deepen cooperation in AI, supercomputing, semiconductors, and jointly host a renewable energy summit.
Relations between India and Canada had been severely strained after the 2023 assassination of Sikh separatist Hardeep Singh Nijjar on Canadian soil, which former Canadian Prime Minister Justin Trudeau linked to India—a claim Delhi denied. Diplomatic ties nearly collapsed, with both countries expelling diplomats and halting visa services. Under Carney, Canada has cautiously rebuilt ties, emphasizing engagement while acknowledging security concerns raised by the Canadian Security Intelligence Service over foreign interference and espionage.
Carney described the renewed engagement as historic, noting that “there has been more engagement between the Canadian and Indian governments in the last year than in more than two decades combined.” Modi set an ambitious goal of $50 billion in bilateral trade and reiterated India’s strategic partnership priorities, particularly in energy and technology.
The visit also included discussions with India’s Foreign Minister S. Jaishankar, and Carney will continue his Asia tour with stops in Australia and Japan to diversify Canada’s trade partnerships and attract investment. Analysts say the rapprochement reflects pragmatic diplomacy amid shifting global geopolitics and growing public support in Canada for stronger ties with India.
