India has extended an invitation to Canadian Prime Minister Mark Carney to visit New Delhi early next year for talks with Prime Minister Narendra Modi. This initiative aims to pave the way for a broad economic and free-trade partnership between the two nations, as reported by The Globe and Mail.
Dinesh Kumar Patnaik, India’s High Commissioner to Canada, emphasized that both countries are making a concerted effort to improve their relationship, which has been impacted by ongoing trade tensions with the United States. He highlighted the potential for bilateral trade to exceed $50 billion annually if a significant trade deal is achieved, expressing a strong desire for an early visit from the Canadian Prime Minister to strengthen this crucial relationship.
Previous free-trade discussions were paused in late 2023 following accusations by Canada’s then-prime minister, Justin Trudeau, regarding alleged Indian government involvement in the killing of Sikh separatist Hardeep Singh Nijjar. These diplomatic tensions escalated with Canada expelling Indian diplomats, leading to reciprocal actions from India.
However, diplomatic relations have shown signs of normalization following a meeting between Prime Ministers Carney and Modi at the G7 summit in Alberta. Patnaik indicated that high-level discussions have been ongoing since the summer to address security concerns and prioritize economic cooperation.
Prime Minister Carney has been invited to the upcoming Artificial Intelligence Action Summit in New Delhi in February. Patnaik stated that Prime Minister Modi is keen to use this opportunity to discuss bilateral issues, including a potential economic and free-trade agreement, aiming for a meeting before March.
Bilateral trade between India and Canada reached a record $23.6 billion in 2024. Patnaik believes a formal trade agreement could easily double this figure, expressing India’s readiness to expedite negotiations. India is particularly interested in Canadian oil, gas, nuclear power, battery storage, fertilizers, processed food, and agricultural products, alongside collaboration in AI and quantum computing. The potential for Indian market access for Canadian canola could also significantly benefit Canada’s agricultural sector.
India is also open to investing in Canada’s energy and critical minerals sectors, provided clear investment rules, environmental standards, and recognition of indigenous rights are established. Patnaik noted that creating the right ecosystem is crucial for attracting Indian investment.
The report also mentioned the recent visit of Canadian Foreign Affairs Minister Anita Anand to India, which resulted in a joint declaration aimed at enhancing law enforcement cooperation and strengthening trade and economic ties. Patnaik reiterated India’s denial of any involvement in Nijjar’s killing and called for a clear security dialogue to address mutual concerns.