Canadian Prime Minister Mark Carney has announced that Canada and India are working toward signing a comprehensive trade agreement before the end of the year, a move that could significantly expand economic ties between the two countries. The plan aims to double bilateral trade by 2030 as both governments attempt to reset relations and deepen cooperation across several sectors.
Speaking at the Canada–India Growth and Investment Forum in Mumbai on February 28, Carney said negotiations are underway for a Comprehensive Economic Partnership Agreement (CEPA). He emphasized that the agreement would strengthen economic collaboration and open new opportunities for businesses in both countries.
Carney described India as one of Canada’s “natural partners,” noting that stronger ties could help both nations enhance economic security and prosperity. Currently, bilateral investment between the two countries stands at approximately $100 billion, while annual trade exceeds $30 billion. According to the prime minister, these figures show strong potential but still leave considerable room for growth.
Beyond trade, Carney said Canada is prepared to expand cooperation with India in strategic sectors such as critical minerals, clean energy, artificial intelligence, and defence. He suggested Canada could play an important role in supplying minerals and metals essential for India’s manufacturing, clean technology, and nuclear industries. At the same time, India’s growing technological and industrial capacity could support Canada’s long-term plans to expand its clean power grid by 2040.
As part of the visit, Canada and India also launched a new talent and innovation strategy aimed at strengthening academic and research collaboration. Canadian Foreign Affairs Minister Anita Anand announced that the initiative includes 13 new partnerships between universities in both countries. The program will focus on student exchanges, joint research projects, hybrid campuses, and the creation of artificial intelligence centres of excellence.
However, the announcement has also drawn some political scrutiny in Canada. Conservative Member of Parliament Adam Chambers questioned whether the agreements will lead to concrete outcomes. In a social media post, he argued that the government must set clear milestones and ensure that signed memorandums and agreements are followed by real implementation.
Carney’s visit comes as Ottawa and New Delhi attempt to repair relations that deteriorated in recent years. Tensions escalated after former Canadian prime minister Justin Trudeau accused India in 2023 of involvement in the killing of Sikh separatist Hardeep Singh Nijjar in British Columbia. India rejected the allegation, and the dispute led to a sharp diplomatic rift.
Since taking office, Carney has sought to rebuild diplomatic engagement with India. Efforts to restore ties included inviting Indian Prime Minister Narendra Modi to the G7 Summit in Alberta last year and resuming discussions on trade negotiations that had been suspended in 2023.
Security concerns and allegations of foreign interference remain a sensitive issue in the relationship. Anand recently stated that Canada takes all claims of foreign interference seriously but stressed that diplomatic engagement is necessary to address complex issues. She said constructive dialogue with partners is essential to protect Canadian interests and ensure national security.
During his Indo-Pacific trip, Carney travelled from Mumbai to New Delhi, where he is scheduled to meet Modi and attend the India–Canada CEO Forum. The visit includes the signing and presentation of several agreements aimed at strengthening economic cooperation.
After concluding his visit to India, Carney is expected to continue his Indo-Pacific tour with stops in Australia and Japan. In Australia, he will meet Prime Minister Anthony Albanese to discuss defence and trade cooperation. He will also address Australia’s parliament, becoming the first Canadian prime minister to do so in nearly two decades.
The final leg of the tour will take him to Japan, where he is scheduled to meet Prime Minister Sanae Takaichi. Talks there are expected to focus on energy partnerships, advanced manufacturing, food security, and deeper defence cooperation in the Indo-Pacific region.
Carney said the broader trip reflects Canada’s intention to strengthen its partnerships in a rapidly changing global economy. By expanding cooperation with key Indo-Pacific partners, Ottawa hopes to create new economic opportunities for Canadian businesses and workers while strengthening international trade networks.
