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Carney's India visit aims to mend ties and boost trade
Canadian Prime Minister Mark Carney arrived in India on Saturday for a high-stakes trip designed to rebuild economic relations with the world's most populous democracy, as both nations seek to reduce their reliance on US trade.
From diplomatic crisis to economic opportunity
The visit marks a sharp reversal in bilateral relations, which had deteriorated after Canada accused India of orchestrating the 2023 assassination of Sikh separatist leader Hardeep Singh Nijjar in British Columbia. India vehemently denied involvement, and four suspects are currently awaiting trial in Canada.
While the allegations remain unresolved, Carney's government has adopted a more pragmatic approach, prioritizing trade diversification over lingering tensions. Officials told reporters that Canada no longer believes India is linked to violent threats on its soil, though some lawmakers and Sikh community leaders remain skeptical.
"The claim that India no longer poses a threat feels disconnected from reality," said Liberal MP Sukh Dhaliwal.
Sukh Dhaliwal, Canadian Parliament
Trade talks take center stage
Carney's itinerary reflects a laser focus on economic cooperation. After meetings with business leaders in Mumbai, India's financial capital, he will travel to New Delhi for discussions with Prime Minister Narendra Modi on Monday. Unlike previous visits by Canadian leaders, this trip omits cultural stops like the Taj Mahal or Punjab, underscoring its business-first agenda.
A key objective is reviving stalled negotiations for a comprehensive free trade agreement, which have dragged on for 15 years. Canada remains the only G7 nation without a preferential trade deal with India, a gap Carney's team hopes to close.
"There is a window of opportunity, and it needs to be seized," said Vina Nadjibulla of the Asia Pacific Foundation of Canada.
Energy and defense top the agenda
Carney and Modi are expected to finalize a 10-year uranium supply agreement, a critical step for India's expanding civilian nuclear program. Other potential deals include increased Canadian exports of crude oil and natural gas, as India seeks to diversify its energy sources amid US tariffs and geopolitical pressures.
Discussions will also cover technology, artificial intelligence, and defense cooperation, as well as strategies to attract Indian talent to Canada. Both leaders are likely to address the impact of US tariffs under former President Donald Trump, which have strained their economies.
Modi's domestic and strategic gains
For Modi, the visit burnishes his image as a leader who refused to bow to foreign pressure. Domestically, it signals India's willingness to engage with partners beyond traditional allies, while internationally, it aligns with efforts to counterbalance US trade policies.
India has recently signed multiple free trade agreements, reflecting its push to expand economic partnerships. Carney's trip comes as both countries grapple with Trump's tariffs, which targeted Indian exports and pressured Delhi to reduce oil imports from Russia.
"The world is in the midst of a rupture, not a transition. If you are not at the table, you are on the menu," Carney said ahead of the trip.
Mark Carney, Canadian Prime Minister
Challenges and skepticism remain
Despite the diplomatic thaw, tensions persist. Some Canadian Sikh leaders accuse India of ongoing transnational repression, a charge India denies. Carney's government has described discussions on national security and foreign interference as "robust" but has not provided details.
Analysts warn that while economic ties may advance, the underlying dispute over Nijjar's killing could resurface. For now, however, both sides appear committed to moving forward.
