India and Canada have unveiled a series of major agreements including a 10-year civil nuclear energy deal following talks between Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney in New Delhi aimed at restoring strained bilateral relations.
The agreements span key sectors such as nuclear energy, technology, critical minerals, space, defence and education. Both leaders also committed to advancing a long-pending free trade agreement, with Carney stating they aim to finalise it by the end of 2026. The move comes as both nations seek to cushion the impact of punitive US trade tariffs and diversify their economic partnerships.
Relations between the two countries deteriorated sharply after former Canadian Prime Minister Justin Trudeau alleged that New Delhi was linked to the 2023 assassination of Sikh separatist Hardeep Singh Nijjar in Canada.
India strongly denied the accusation, and tensions escalated as both nations expelled diplomats and suspended visa services. Trade and diplomatic engagement slowed significantly, despite Canada being home to a large Indian diaspora.
Since taking office last year, Carney has sought to repair the relationship. His government has indicated that it does not believe India is currently connected to violent crimes or threats on Canadian soil. Meanwhile, legal proceedings against four men charged in Nijjar’s killing remain ongoing.
Following their meeting at Hyderabad House in Delhi, Modi highlighted the significance of the nuclear agreement.
“In civil nuclear energy, we have reached a landmark deal for long-term uranium supply. We will also work together on small modular reactors and advanced reactors,” he told reporters.
The deal will see Canada supply uranium to support India’s expanding nuclear energy programme, while both countries collaborate on next-generation reactor technologies.
Carney described the agreement as part of a broader strategic energy partnership, noting Canada’s ability to help meet India’s growing energy demands. He also praised the recent diplomatic progress, stating:
“There has been more engagement between the Canadian and Indian governments in the last year than there has been in more than two decades combined.”
Economic cooperation featured prominently in the talks. Modi said: “Our target is to reach $50bn in bilateral trade. This is why we have decided to finalise a comprehensive economic partnership soon.”
Carney expressed optimism about concluding what he called an “ambitious agreement” by year’s end. The proposed trade pact has been discussed intermittently for more than 15 years, making its potential completion a significant milestone.
Analysts view the diplomatic thaw as a pragmatic response to shifting global dynamics. India is actively seeking to diversify energy imports and reduce reliance on Russia, while Canada aims to broaden its trade network and attract fresh investment in Asia.
Earlier in his visit, Carney met India’s External Affairs Minister S. Jaishankar to discuss building a “forward-looking partnership.”
His four-day trip began in Mumbai, where he held meetings with business leaders and government officials to promote trade and investment. After concluding his visit in Delhi, Carney is scheduled to travel to Australia and Japan as part of Canada’s broader strategy to expand trade ties and secure new economic partnerships across the Indo-Pacific.
The renewed cooperation signals a significant shift in India-Canada relations, with both sides prioritising economic growth, energy security and long-term strategic alignment.
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