India and Canada Strengthen Trade: India and Canada have solidified agreements on critical minerals and uranium ore supply, as Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney aim to boost bilateral trade to $50 billion by 2030. The leaders also finalized terms for a free trade agreement, reflecting a renewed commitment to deepen economic and security cooperation.
Carney’s visit to India marks a significant step in rebuilding relations after tensions in 2023. The rapprochement began with a meeting between Modi and Carney at the G7 Summit, leading to a roadmap for resetting bilateral ties.
A memorandum of understanding on critical mineral cooperation and a $2.6 billion uranium supply agreement were signed, underscoring the strategic importance of these resources. Modi emphasized the positive momentum in relations, attributing it to mutual trust and cooperation.
Carney highlighted the transformative global landscape, advocating for stronger trade and defence ties. He stressed the need for countries to forge partnerships that promote inclusivity and sustainability.
The two countries aim to conclude the Comprehensive Economic Partnership Agreement by the end of the year, reducing barriers for exporters and investors. Canada’s pension funds, with $2 trillion in capital, have already invested $100 billion in India, reflecting confidence in its growth potential.
Bilateral trade in goods and services reached significant figures in 2024, and both sides are committed to enhancing defence cooperation. The India-Canada Defence Dialogue will focus on maritime collaboration and shared security interests.
Carney positioned Canada as a reliable source for India’s energy needs, highlighting opportunities in LNG and renewable energy. He also noted the importance of people-to-people ties, with a vibrant Canadian Indian community and strong educational collaborations.
The new Canada-India Talent and Innovation Strategy aims to deepen educational ties, with partnerships in AI, health sciences, and digital architecture. Modi announced plans for Canadian universities to open campuses in India.
The two nations also signed a trilateral MoU with Australia on technology cooperation, further cementing their strategic partnership.
Published in SouthAsianDesk, March 3rd, 2026
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