Prime Minister Mark Carney and Indian Prime Minister Narendra Modi have agreed to commence discussions for a new trade agreement known as the Comprehensive Economic Partnership Agreement. Carney, in a social media update, mentioned that this deal could potentially double trade between Canada and India to $70 billion. Highlighting India’s status as the world’s fifth-largest economy, Carney expressed optimism about the significant opportunities this agreement could bring for Canadian workers and businesses.
India’s Ministry of External Affairs confirmed this development and disclosed that Modi has extended an invitation to Carney to visit India, which Carney’s office indicated he plans to accept in early 2026. This move signifies a positive shift in the diplomatic relations between Canada and India following previous strains related to allegations of Indian involvement in a high-profile case on Canadian soil.
The recent meeting between Carney and Modi at the G20 summit in South Africa marks their second face-to-face encounter since Carney assumed office, with the previous meeting occurring at the G7 summit in Canada. Discussions on trade have been ongoing between the two countries since the G7 summit, as mentioned by Dinesh Patnaik, India’s high commissioner to Canada, during an interview.
Although trade talks between Canada and India were initiated 15 years ago, they were stalled in 2023 due to the aforementioned allegations. However, recent statements from Modi and Carney indicate a positive momentum in their bilateral ties, emphasizing the importance of strengthening economic cooperation.
Despite ongoing concerns about security threats, both leaders are working towards enhancing trade relations. Carney emphasized the need for vigilance against foreign interference and assured collaboration with Indian authorities on security matters. The meeting between Carney and Modi is seen as a step towards boosting trade with one of the world’s largest economies.
Meanwhile, the Sikh community in Canada is conducting a referendum in Ottawa, led by Sikhs for Justice, advocating for an independent Sikh Punjab. This movement has sparked controversy, with differing perspectives on its implications for Canadian-Indian relations. The Indian government views such initiatives as provocative and a violation of its sovereignty.
As diplomatic efforts progress, maintaining a balance between economic cooperation and security concerns remains crucial for both Canada and India. The focus is on fostering dialogue, addressing law enforcement issues, and ensuring public safety amidst evolving diplomatic relations.
