Modi and Carney Unveil New Era of India-Canada Ties with Trade and Security Pledges

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Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney have marked a significant shift in their countries' relations with a raft of agreements and a commitment to expand trade and deepen security cooperation. During Carney's four-day visit to India, the two leaders firmed up deals on critical minerals and uranium supplies, and finalised the terms of reference for a long-stalled free trade agreement. The visit comes as part of efforts to rebuild ties that were strained in 2023 following allegations by former Canadian Prime Minister Justin Trudeau that Indian government agents were involved in the killing of a Khalistani separatist. However, Modi and Carney have now pledged to move forward, with a focus on boosting commerce and investments by concluding the trade deal within the year. The two sides have agreed to increase two-way trade, with Modi and Carney emphasising the importance of reaching a target of $50 billion by 2030. They also reiterated plans to bolster defence ties, with the launch of the India-Canada Defence Dialogue, and to enhance cooperation in areas such as energy security, talent mobility, and trusted technology ecosystems. Canada has emerged as a key partner for India in its efforts to access critical minerals for its manufacturing and clean tech sectors. The two sides have agreed to work together on small modular reactors (SMRs) and advanced conventional reactors, and Canada will join the International Solar Alliance and the Global Biofuel Alliance. The visit has also seen the signing of 24 MoUs and partnerships in areas such as AI, healthcare, and innovation, as well as the launch of a new Canada-India Talent and Innovation Strategy. The strategy includes collaborations with top universities such as McGill, Toronto, and British Columbia, and will provide fully funded internships for 300 Indian students annually in disciplines such as science, engineering, mathematics, and the humanities. Carney's visit marks an important inflection point in bilateral ties, with the normalisation of relations now translating into tangible economic outcomes. The renewed partnership between India and Canada is expected to focus on trusted technology ecosystems, energy security, and talent mobility, and will provide a boost to the bilateral trade, which was worth Canadian $13.32 billion in 2024.