India and Canada have moved to decisively repair their strained relationship, signing a 10-year civil nuclear energy pact and outlining an ambitious roadmap to expand trade and strategic cooperation. The agreements were finalised after Prime Minister Narendra Modi held talks with his Canadian counterpart Mark Carney in New Delhi on March 2.
The centrepiece of the reset is a long-term uranium supply agreement that will power India’s growing nuclear energy programme, a BBC report said. The two sides will also collaborate on small modular reactors and advanced reactor technologies, signalling deeper cooperation in clean and reliable energy.
Modi described the civil nuclear pact as a “landmark deal” and said the two countries would strengthen collaboration in artificial intelligence, supercomputing, semiconductors and critical minerals. He added that India and Canada would jointly host a renewable energy summit and expand cooperation in defence, space, education and emerging technologies.
Carney said Canada was well positioned to support energy-hungry India’s nuclear fuel requirements and announced the launch of a broader strategic energy partnership. He emphasised that engagement between the two governments over the past year had surpassed that of the previous two decades combined.
Both leaders agreed to fast-track negotiations on a long-pending comprehensive economic partnership agreement, with a target to conclude talks by the end of 2026. The proposed deal, under discussion intermittently for 15 years, aims to significantly expand bilateral trade and investment flows.
Modi said the two countries were targeting $50 billion in bilateral trade, underlining the need to finalise a comprehensive pact soon. Carney described the proposed agreement as ambitious and said both sides were committed to closing it within the year.
The renewed momentum comes as both countries seek to reduce exposure to punitive US trade tariffs and diversify supply chains amid shifting geopolitical realities.
Relations had deteriorated sharply after former Canadian Prime Minister Justin Trudeau alleged India’s involvement in the 2023 killing of Sikh separatist Hardeep Singh Nijjar in Canada. New Delhi strongly rejected the allegation.
The dispute led to expulsions of diplomats, suspension of visa services and a near standstill in trade and diplomatic engagement. Canada is home to a large Indian diaspora, making the breakdown particularly sensitive.
Under Carney, Ottawa has taken a more conciliatory approach, stating that it does not believe India is currently linked to violent crimes or threats on Canadian soil. Legal proceedings against four men charged in Nijjar’s killing are continuing in Canadian courts.
During the Delhi talks, both leaders underscored the long-standing people-to-people ties and shared democratic values binding the two nations.
Carney’s four-day visit began in Mumbai, where he met business leaders and officials to boost trade and investment flows. After concluding engagements in Delhi, he is scheduled to travel to Australia and Japan as part of Canada’s broader strategy to diversify trade partnerships in the Indo-Pacific.
For India, the reset with Canada strengthens access to critical minerals and nuclear fuel while opening avenues for technology collaboration. For Canada, it marks a pragmatic pivot towards one of the world’s fastest-growing major economies.