Lead
Bank of Canada Governor Mark Carney began a short, high-stakes visit to India this week with stops in Mumbai and New Delhi to restore bilateral ties and accelerate trade diversification away from dependence on the United States. He is meeting business leaders in Mumbai and will hold talks with Prime Minister Narendra Modi in New Delhi, with energy, technology and defence among the priorities. The trip follows a diplomatic rupture after Canada publicly accused India in 2023 of involvement in the killing of Hardeep Singh Nijjar — an allegation India denies — even as both governments now signal readiness to press ahead on economic cooperation.
Key takeaways
- Carney visited Mumbai and New Delhi to prioritize trade and investment ties and meet business and political leaders.
- Canada aims to reduce economic reliance on the US and pursue a comprehensive free-trade agreement with India that has been discussed intermittently for about 15 years.
- Canada accused India in 2023 of illegal involvement in the killing of Hardeep Singh Nijjar; four men have been charged in Canada and the case remains before the courts.
- Officials say national security and foreign interference are being discussed; Ottawa states it does not currently link the Indian government to violent crimes on Canadian soil.
- India seeks diversified energy suppliers; officials expect announcements on long-term uranium and hydrocarbon supply, including talks on a likely 10-year uranium supply arrangement.
- President Trump’s tariff policies have prompted both Ottawa and Delhi to seek alternative trade partners, increasing urgency for a Canada–India economic reset.
- Carney’s itinerary omits cultural and regional stops such as the Taj Mahal and Punjab, signaling a narrowly economic focus rather than outreach to Canada’s Indo‑Canadian communities.
Background
Relations between Ottawa and New Delhi deteriorated sharply after Prime Minister Justin Trudeau publicly accused India in 2023 of involvement in the killing of Hardeep Singh Nijjar, a Canadian citizen and Sikh activist gunned down in British Columbia. India has consistently denied the allegation. The accusation prompted reciprocal diplomatic measures, including suspended visa services and expulsions.
Since Carney took office, Ottawa has pursued a pragmatic pivot: repairing ties with Delhi while seeking trade partners beyond the United States. Canada has made a series of diplomatic gestures — inviting Prime Minister Modi to the G7 in Kananaskis, hosting talks between Foreign Minister Anita Anand and India’s S. Jaishankar, and receiving India’s national security adviser Ajit Doval in Ottawa.
Main event
Carney began in Mumbai, meeting corporate executives and financiers to underscore Canada’s interest in deeper commercial ties. His Mumbai agenda was explicitly business-focused: finance, energy, talent attraction and technology partnerships. From Mumbai he traveled to New Delhi for bilateral talks with Prime Minister Modi.
Ottawa says its discussions cover national security and foreign interference alongside trade, and Canadian officials told reporters before the trip that they do not believe the Indian government is presently linked to violent crimes on Canadian soil. Nonetheless, some Canadian politicians and members of the Sikh community remain skeptical and call for continued vigilance.
Trade discussions are expected to include energy deals — Canada is positioned to supply uranium, crude oil and gas — and exploratory talks on artificial intelligence, defence cooperation and broader investment frameworks. Sources say negotiators are pursuing both long-term supply contracts and incremental, sector-specific agreements that can deliver early wins.
Analysis & implications
The trip embodies a pragmatic recalibration: Canada seeks to diversify markets while managing a politically sensitive security dispute. For Ottawa, securing stable energy and technology ties with India reduces exposure to US tariff volatility and geopolitical pressure. For New Delhi, reliable suppliers for uranium and hydrocarbons support ambitious domestic industrial and civilian nuclear programmes.
Politically, the reset gives Prime Minister Modi a diplomatic advantage: domestic optics of a visit by a senior Canadian official signal international acceptance while delivering material energy and trade benefits. For Carney, the visit is an explicitly economic mission; his itinerary avoided symbolic stops that would be interpreted as outreach to Canada’s Indo‑Canadian constituencies.
Economically, short-term gains are plausible — supply agreements and targeted industrial cooperation — but a comprehensive Canada–India free-trade agreement would still require protracted negotiations. The 15-year history of episodic FTA talks underscores institutional and policy differences that will slow any final deal.
Comparison & data
| Metric | Detail |
|---|---|
| FTA negotiation history | Comprehensive talks on-and-off for about 15 years |
| Canada’s G7 status vs India | Canada remains the only G7 country without a preferential trade agreement with India |
| Reported tariffs | India has faced tariffs close to 50% on certain exports to the US (as reported) |
The table highlights why Ottawa views a faster rapprochement as urgent: tariff pressures and the absence of an India preferential deal for Canada create incentives to prioritise pragmatic, incremental agreements over prolonged diplomatic confrontation.
Reactions & quotes
Canadian and Indian officials framed the visit as business-first while acknowledging unresolved community concerns and security questions.
“We are in the midst of a rupture, not a transition — if you are not at the table, you are on the menu.”
Mark Carney
Carney used forthright language to explain the economic logic for engaging India despite political sensitivities. Other commentators warned the reconciliation requires careful handling to avoid alienating affected communities.
“This will require delicate handling.”
Vina Nadjibulla, Asia Pacific Foundation of Canada
Nadjibulla emphasized the need to balance trade openings with robust discussions on national security and community protection. Some domestic critics remained unconvinced by the official assessment of risk.
“The claim India is no longer a threat is disconnected from the reality.”
Sukh Dhaliwal, Member of Parliament (Liberal)
Dhaliwal’s statement reflects ongoing parliamentary and community scrutiny of the security question in Canada.
Unconfirmed
- Direct state involvement by the Indian government in the killing of Hardeep Singh Nijjar remains an allegation; Canadian courts have charged four individuals, and India denies the claim. Formal proof linking the Indian state to the killing has not been established publicly.
- Claims that India is actively conducting transnational repression against Sikh Canadians are reported by community groups but require further public evidence and official verification to establish scope and state attribution.
Bottom line
Carney’s visit to Mumbai and New Delhi is a calculated, business-first restart of Canada–India relations designed to secure trade, energy and technology cooperation while containing political fallout from a fraught security allegation. Ottawa’s approach is pragmatic: pursue concrete commercial deals that reduce US market dependence while maintaining dialogue on security and foreign interference.
The prospects for quick, headline-grabbing outcomes are real in targeted sectors such as uranium and hydrocarbons, but a full comprehensive free-trade agreement will likely remain a long-term project given 15 years of episodic talks and persistent political sensitivities. Observers should watch for firm supply agreements and the tone of follow-up negotiations, which will indicate whether the reset delivers substantive change or a tactical pause in bilateral tensions.