Canada is working to reignite trade ties with India after a diplomatic pause that stalled negotiations in 2023.
The emphasis is now shifting from political tensions to economic opportunity, with both governments keen to develop partnerships in sectors like critical minerals, clean energy, aerospace, agriculture, and artificial intelligence.
According to a Reuters report, Canadian Trade Minister Maninder Sidhu’s recent three-day visit to India signals the first major step towards rebuilding commercial relations between the two nations.
While formal trade talks remain paused, the focus is now on launching a fresh process grounded in global economic realignments and resource interdependence.
Focus moves beyond deadlock and toward mutual investment
The backdrop to this visit is significant. Canada halted comprehensive trade talks with India last year after accusing New Delhi of involvement in the killing of a Sikh separatist in British Columbia.
But with political atmospheres shifting, both sides are returning to the table, albeit cautiously.
Sidhu met Indian Commerce Minister Piyush Goyal in what he described as a productive ministerial exchange.
Discussions centred on shared economic priorities, including India’s interest in Canada’s rich deposits of minerals critical to electric battery production.
Ottawa, in turn, is looking to attract Indian investment across mining and infrastructure.
Reuters notes that according to Sidhu, “Canada has every element needed to build an electric battery,” and is now actively encouraging foreign investment to harness this potential.
India’s growing clean energy demands and focus on supply chain diversification provide fertile ground for such cooperation.
New leadership and global context push ties forward
Another key factor in the thaw is political change. The government of Canada’s new Prime Minister, Mark Carney, has brought what Sidhu called, as per Reuters, “a new focus, new energy and new mandate.”
His administration is using that renewed direction to reset ties with India.
This shift follows Prime Minister Narendra Modi’s meeting with Carney during the G7 summit in June.
The engagement opened a diplomatic window for dialogue and potential cooperation.
Canada sees India as a strategic partner in navigating new trade realities, especially in light of US-imposed tariffs affecting both countries.
While no formal timeline for restarting negotiations has been announced, Sidhu confirmed both countries are in “early discussions” and see potential for alignment in multiple sectors.
That includes a strong push to integrate efforts in artificial intelligence and agricultural technology, sectors where India has a growing interest and Canada maintains expertise.
Bilateral interest builds in business circles
Outside government corridors, commercial enthusiasm is also gaining pace. During his visit, Sidhu met with executives from several Indian conglomerates, including the Tata Group.
These companies have expressed intent to scale up operations in Canada, particularly in energy, infrastructure, and emerging technologies.
India remains Canada’s largest source of immigration, with over 1.8 million Canadians of Indian origin and nearly 393,000 Indian students enrolled in 2024. But beyond people flows, the trade figures are also telling.
Two-way goods and services trade reached around $31 billion in 2024, most of it in Canada’s favour due to a $16 billion services export advantage.
Goyal has also committed to a reciprocal trade mission to Canada.
He is expected to lead a delegation focused on investment collaboration, reinforcing the signal that both governments are serious about moving forward with renewed purpose.
The path to a formal trade pact may remain complex, but the shared language of energy security, technological advancement, and mineral wealth is now doing the talking.
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