A delicate balancing act for Canada and a potential win for Modi as Carney visits India
Vikas Pandey, India editor, and Nadine Yousif, Senior Canada reporter
AFP via Getty Images
Prime Minister Mark Carney is in India for a pivotal mission: to repair a relationship with the world’s largest democracy as both nations aim to diversify away from heavy reliance on the United States for trade.
Carney kicked off the trip in Mumbai, where he’s meeting business leaders, before heading to New Delhi for talks with Prime Minister Narendra Modi.
This trip marks a striking thaw in a relationship that soured after Canada accused India of involvement in an extrajudicial killing on Canadian soil—a charge New Delhi has repeatedly denied.
Both sides appear poised to move forward now.
What has shifted, and what each country hopes to gain as Carney begins his journey
Squeezing tariffs from the US, Canada mends fences with former adversaries
By Nadine Yousif
For Carney, this visit is primarily about business, aligning with a broader aim to diversify Canada’s trade partners and lessen the economy’s dependence on the US.
A key priority is advancing a comprehensive free trade agreement with India, talks on which have stretched over about 15 years.
Recent disruptions to the talks followed a 2023 public accusation by former Prime Minister Justin Trudeau that India was involved in the killing of Hardeep Singh Nijjar, a Sikh separatist shot in British Columbia. Four suspects were later charged in Nijjar’s death and the case remains before the courts. India has consistently denied involvement.
Now, facing US tariffs and adopting a more pragmatic foreign policy, Ottawa is seeking to repair ties with Delhi.
Still, the Nijjar accusations linger for some in Canada’s Sikh community, who argue they face transnational repression and worry that India’s actions threaten their safety. They say Carney is prioritizing economic interests over their security.
Experts caution that this is a situation requiring careful handling. “Delicate handling” is how Vina Nadjibulla, vice-president of the Asia Pacific Foundation of Canada, described it to the BBC.
Ahead of Carney’s trip, Canadian officials stressed that Canada and India are engaging in robust discussions on national security and foreign interference. They added that Canada does not believe the Indian government is currently linked to violent crimes or threats on Canadian soil, and that they likely wouldn’t make this trip if such concerns persisted.
Not everyone is convinced. Sukh Dhaliwal, a Liberal MP, told Canadian media that the claim of India no longer posing a threat is “not connected to reality.”
Since Carney took office last year, Canada has extended several diplomatic gestures toward India, starting with an invitation for Modi to attend the G7 summit in Kananaskis, Alberta, last summer.
That outreach was followed by meetings between Canada’s Foreign Minister Anita Anand and India’s External Affairs Minister S. Jaishankar, as well as a visit to Ottawa by India’s National Security Advisor Ajit Doval in the previous month.
Carney’s itinerary in India signals his priorities. He will remain in Mumbai to meet business leaders and then proceed to New Delhi for a Monday discussion with Modi.
Unlike his predecessor Justin Trudeau, Carney will not visit cultural sites such as the Taj Mahal, nor travel to Punjab—the home state of many Sikhs—in contrast to Trudeau and former prime minister Stephen Harper. These omissions suggest a tighter focus on trade rather than symbolic gestures toward Canada’s large Indo-Canadian and Sikh communities.
Energy, technology, artificial intelligence, and defense are on Carney’s agenda, along with attracting top talent to Canada, his office says. The talks are also expected to touch on tariff policies implemented by former U.S. President Donald Trump, which have impacted both economies.
As the trip approaches, Canada remains the only G7 nation without a preferential trade agreement with India. Nadjibulla notes that this reality elevates the urgency of Carney’s mission, describing the moment as a window of opportunity that must be seized.
A win for India as it seeks new energy sources
By Vikas Pandey
In 2024, tensions between the two countries were high, with visa services suspended and diplomats expelled. Yet much has shifted since then.
India has become more open to business, signing a flurry of new trade deals. Meanwhile, the Trump administration has pressured both India and Canada with steep tariffs.
Carney has warned that the global order of rules-based international interaction is unsettled, saying the world is in a rupture rather than a transition, and that those not at the negotiating table risk becoming targets.
For Modi, rearming ties with Canada represents a strategic win-win. Domestically, the visit reinforces Modi’s image as a leader who can stand firm against external pressure.
Ottawa has reiterated that India is not currently implicated in violent crimes or threats on Canadian soil. Yet beyond this reassurance, the broader potential of expanded trade between the two nations is the primary driver of the visit.
Until recently, India faced roughly 50% tariffs on many exports to the United States and faced pressure to reduce purchases of Russian oil. Since then, Delhi has been pursuing a diversification of its energy mix.
Carney’s trip could yield concrete gains in energy cooperation. While a wide-ranging trade agreement may take time, notable wins in the energy sector appear likely. India’s civilian nuclear program aims to expand reactors, but it needs a reliable uranium supply; a 10-year uranium supply deal is a probable outcome. Additional agreements to boost crude oil and natural gas imports from Canada are also on the table.
For India, diversifying its energy import portfolio with long-term uranium, oil, gas, and coal supplies is highly valuable, making Canada an attractive partner. Modi is expected to welcome Carney warmly.
The swift repair of ties between India and Canada underscores how leaders are navigating a world disrupted by tariffs and geopolitical shifts. Both prime ministers seem aware of today’s global realities and are moving quickly to adapt.
