Canada and India plan to reach a trade agreement before the end of the year
Canadian Prime Minister Carney, who is currently visiting India, said on the 2nd that the two countries will strive to reach a trade agreement before the end of this year to "reduce barriers and increase certainty". Indian Prime Minister Modi stated that the two countries hope to increase bilateral trade to $50 billion by 2030, and specifically mentioned that the two sides will strengthen cooperation in civil nuclear energy.
Carney began his four-day visit to India on February 27th, marking his first visit to India since taking office as Canadian Prime Minister in March last year. Inca relations deteriorated in 2023, and after coming to power, Kani intended to ease relations with India. On the 2nd, he attended a press conference with Modi in New Delhi and stated that "the contacts between the Indian and Canadian governments in the past year have been more than the combined contacts of the previous two decades". In addition to expanding bilateral trade, the two countries have also proposed to deepen cooperation in areas such as clean energy, key minerals, and agricultural value chains.
Modi said that in terms of civilian nuclear energy, the two countries have reached a milestone agreement on the long-term supply of uranium and will cooperate in small modular reactors and advanced reactors. According to Agence France Presse, India plans to increase its nuclear power installed capacity from the current 8 gigawatts to 100 gigawatts by 2047.
Carney said that in addition to signing a uranium supply agreement worth CAD 2.6 billion (approximately USD 1.9 billion), Canada's liquefied natural gas can also be supplied to India; In terms of key minerals sought by India for its manufacturing industry, clean energy technology, and nuclear power plant development, Canadian companies in related fields can also become "strategic partners" of India.
Carney also said that the two countries are updating their cooperation in the field of security through a "new defense partnership".
Since 2010, Canada and India have been intermittently negotiating trade agreements. In September 2023, then Canadian Prime Minister Trudeau publicly accused the Indian government of involvement in the assassination of Canadian Sikh leader Hadip Singh Nizar, which the Indian side denied. The discord between the two countries escalated and they expelled each other's diplomats, leading to the freezing of trade agreement negotiations.
During the G7 summit held in Canada in June 2025, Carney met with Modi, who was invited to attend as a guest, and both sides agreed to send new high commissioners (equivalent to ambassadors) to each other, leading to a easing of relations between the two countries. During the G20 summit to be held in South Africa in November 2025, Modi and Carney held bilateral talks and agreed to restart negotiations on a trade agreement between the two countries.
Against the backdrop of significant uncertainty in international trade brought about by current US policies, both Canada and India are actively seeking to expand cooperation with other trading partners.
After Trump regained control of the White House, the relationship between Canada and its largest trading partner, the United States, became increasingly tense. Carney promised to strive to double Canada's exports to countries outside the United States within ten years.
India signed a free trade agreement with the European Union in January this year. In addition, India has recently suspended negotiations with the United States on a proposed trade agreement, hoping to resume negotiations after the US tariff policy becomes clearer.