Mark Carney and Narendra Modi 
Industry and Trade

Carney in India on business-first mission as trade reset gathers pace

Tariffs and trade top agenda as Carney meets Modi

KPM Basheer

Canadian Prime Minister Mark Carney has landed in India on a mission to reboot a relationship that had sharply deteriorated over the past two years. With both Ottawa and New Delhi seeking to cut their trade dependence on the US, the visit signals a pragmatic reset driven by economic priorities rather than political optics.

Carney began his trip in Mumbai, where he is meeting business leaders, before heading to New Delhi for talks with Prime Minister Narendra Modi.

A pivotal shift in relations

The visit marks a significant shift after relations plunged in 2023 when Canada accused India of involvement in the killing of Sikh separatist Hardeep Singh Nijjar in British Columbia. India denied the allegation, and the diplomatic fallout stalled trade talks and triggered reciprocal expulsions of diplomats.

Now, economic compulsions appear to be driving reconciliation.

Trade push amid US pressure

For Carney, the India visit is closely aligned with his strategy of diversifying Canada’s export markets and reducing reliance on the US, particularly amid renewed tariff pressures from Washington.

A key objective is reviving negotiations on a comprehensive free trade agreement that has been discussed intermittently for nearly 15 years. Canada remains the only G7 country without a preferential trade pact with India — a gap Ottawa is keen to close.

Canadian officials have said the two sides are engaged in discussions on national security and foreign interference, suggesting that contentious issues have not disappeared but are being handled through diplomatic channels.

Skips political hot hubs

Carney’s itinerary underscores the shift in tone. He is visiting Mumbai, India’s financial hub, and New Delhi for formal talks, but has avoided politically symbolic stops such as Punjab or the Taj Mahal — locations frequently included in previous prime ministerial visits.

The agenda includes energy, technology, artificial intelligence and defence cooperation. Attracting skilled talent to Canada is also expected to feature in discussions.

US tariffs will be on the table

For Modi, Carney’s visit offers an opportunity to normalise ties with a G7 country at a time when India is positioning itself as a key global economic partner, bbc.com pointed out in a report.

Canada is a significant source of energy resources, including crude oil, uranium and critical minerals — areas that align with India’s long-term energy security and clean transition goals.

Improved ties could also boost collaboration in higher education, technology partnerships and supply-chain diversification.

Both leaders are also expected to discuss the broader global trade environment, including tariff policies introduced by Donald Trump, which have impacted multiple economies.

Balancing act for both

Despite the reset, sensitivities remain. Sections of Canada’s Sikh community continue to express concern about alleged transnational repression, while some Canadian lawmakers have questioned whether ties are being restored too quickly.

However, Ottawa’s current stance suggests it sees strategic and economic engagement with India as essential.

For both governments, the visit reflects a calculated balancing act — setting aside public acrimony to focus on trade, energy security and geopolitical alignment.

If the talks yield tangible progress on a trade framework, the trip could mark the start of a more transactional, less emotive chapter in India–Canada relations.

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