Prime Minister Mark Carney and Indian Prime Minister Narendra Modi have agreed to commence discussions on a new trade agreement known as a Comprehensive Economic Partnership Agreement. Carney mentioned in a social media post that this trade deal could potentially increase Canada-India trade to $70 billion.
India, being the world’s fifth-largest economy, presents significant opportunities for Canadian workers and businesses, according to Carney. A news release from India’s Ministry of External Affairs confirmed this development, also stating that Modi extended an invitation to Carney to visit India, which Carney’s office confirmed for early 2026.
This move signals a positive shift in diplomatic relations between Canada and India following tensions related to allegations of Indian involvement in the killing of Sikh activist Hardeep Singh Nijjar on Canadian soil in 2023. Carney and Modi’s recent meeting at the G20 summit in South Africa marked their second face-to-face encounter since Carney took office, with their previous meeting occurring at the G7 summit in Canada.
Discussions on trade between the two countries have been ongoing since the G7 summit, as mentioned by Dinesh Patnaik, India’s high commissioner to Canada. Notably, Canada and India initiated talks for a trade deal 15 years ago, which were later reduced to sectoral discussions until 2023 when Ottawa suspended trade negotiations due to the aforementioned allegations.
Modi expressed satisfaction with the progress in bilateral ties and highlighted the positive momentum since their last meeting at the G7 Summit. Despite lingering security concerns, both countries are focused on fostering safe environments for their citizens, as highlighted by Patnaik.
The article also addresses ongoing security issues and allegations of threats from India, with the Canadian Security Intelligence Service remaining vigilant. Carney emphasized the importance of maintaining a strong partnership with India while addressing foreign interference concerns.
Sikhs for Justice, currently conducting a referendum in Ottawa for an independent Sikh Punjab, criticized Canada’s efforts to restore relations with India. The Indian government views the referendum as a provocation, emphasizing sovereignty concerns. The article concludes with Foreign Affairs Minister Anita Anand’s assurance that the meeting between Carney and Modi is not intended to undermine domestic interests but focuses on law enforcement matters and public safety.