Canadian Prime Minister Mark Carney has secured a sweeping new strategic partnership with India, marking a significant reset in bilateral relations and positioning both countries to deepen cooperation across energy, trade, technology, talent development, and defence.
The visit to Mumbai and New Delhi represents the first bilateral trip to India by a Canadian prime minister since 2018. During high-level meetings with Indian Prime Minister Narendra Modi, the two leaders released a joint statement, welcomed five new Memorandums of Understanding (MOUs), and confirmed that negotiations toward a Comprehensive Economic Partnership Agreement (CEPA) will conclude this year.
The renewed engagement comes at a time when both countries are seeking to diversify supply chains and strengthen economic resilience in a rapidly shifting global environment. India, now the world’s fastest-growing major economy with a population of approximately 1.4 billion, is experiencing one of the fastest-growing energy demands globally. Canada, for its part, has positioned itself as a major supplier of energy, agricultural products, and critical minerals, while also advancing its capabilities in artificial intelligence, quantum computing, and advanced manufacturing.
In 2024, total direct and indirect Canadian investment in India surpassed $110 billion, underscoring the depth of commercial ties between the two countries. Canadian officials described this week’s visit as the most active year of bilateral engagement between Ottawa and New Delhi in over two decades.
Central to the new framework is a Strategic Energy Partnership covering liquefied natural gas (LNG), liquefied petroleum gas (LPG), uranium, solar energy, hydrogen, and other clean energy sources. Among the most significant announcements was a $2.6 billion agreement between India’s government and Saskatchewan-based Cameco to supply nearly 22 million pounds of uranium for India’s nuclear energy generation between 2027 and 2035.
The leaders also welcomed two additional MOUs aimed at strengthening cooperation on critical minerals and diversifying energy supply chains through technical and commercial collaboration. Canada further signalled its intention to join the International Solar Alliance and upgrade to full membership in the Global Biofuels Alliance, reflecting a broader push toward clean energy partnerships.
Discussions on LNG and LPG included plans to intensify engagement toward what could become Canada’s first long-term LPG supply arrangement with India.
Trade remains foundational to the partnership. Carney and Modi confirmed that negotiators have finalized the Terms of Reference for a Comprehensive Economic Partnership Agreement and will work toward concluding the CEPA within the year. The proposed agreement is expected to advance Canada’s goal of more than doubling bilateral trade to $70 billion by 2030.
Beyond energy and trade, the two countries announced a series of initiatives aimed at strengthening educational, cultural, and research exchanges. Under a new Canada-India Talent and Innovation Strategy, 13 new university partnerships will be established. Dalhousie University plans to open an innovation campus in collaboration with the Indian Institute of Technology Tirupati and the Indian Institute of Science Education and Research Tirupati. The University of Toronto and McGill University will also establish Centres of Excellence in India.
The initiative includes expanded student and faculty exchanges, 300 funded Indian student researcher positions, and up to $100 million in funding from the University of Toronto to support fully funded scholarships for Indian students as well as outbound opportunities for Canadians. Additionally, $10 million in Indo-Pacific scholarships and fellowships will support more than 85 Canadian graduate students and researchers collaborating with Indian institutions.
An MOU on cultural cooperation was also signed, promoting collaboration in performing arts, visual arts, literature, music, and entertainment technologies, further strengthening people-to-people ties. Canada is home to more than 1.8 million people of Indian origin, forming one of the country’s largest diaspora communities.
In the technology sector, the Canadian Space Agency and the Indian Space Research Organisation agreed to expand cooperation on Earth observation and explore joint initiatives in space exploration and quantum technologies, including applications for disaster resilience.
India’s third-largest IT services company, HCL Technologies, announced plans to expand its Canadian operations by 75 percent by 2030, a move expected to create thousands of high-skilled jobs. The two countries also formalized collaboration on artificial intelligence development under the Australia-Canada-India Technology and Innovation Partnership.
Defence and security cooperation featured prominently in discussions. Canada and India agreed to increase maritime security coordination and explore opportunities for joint naval activities aimed at enhancing interoperability and knowledge exchange. Both sides also committed to advancing cooperation on law enforcement issues, including combating transnational organized crime and the illegal flow of drugs such as fentanyl precursors. Carney emphasized that Canada will continue measures to address transnational repression.
The Prime Minister also met with leading Indian business executives representing firms with a combined market capitalization of approximately $600 billion. Accompanied by cabinet ministers, parliamentarians, and senior executives from Canada’s nine major pension funds, the delegation promoted investment opportunities in Canadian infrastructure, energy, manufacturing, mining, defence, artificial intelligence, quantum computing, and health technology.
According to Canadian officials, more than 10 commercial agreements were finalized during the visit, collectively valued at over $5.5 billion. The federal government states that in the past 10 months it has helped secure $85 billion in global investment commitments.
Carney extended a formal invitation to Modi to visit Canada, signalling continued high-level engagement as both countries pursue deeper economic integration.
In a statement following the meetings, Carney described India as a “powerhouse of global commerce and technology” and characterized the partnership as the product of “two confident, ambitious nations” working to build more diversified and resilient economies.
The agreements reached in New Delhi reflect a recalibration of Canada-India relations, with both governments framing the partnership as a long-term strategic alignment aimed at strengthening economic security, expanding technological collaboration, and reinforcing Indo-Pacific engagement amid accelerating global change.
About the Author
