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Home » India and Canada Tout Sweeping Economic Partnership

India and Canada Tout Sweeping Economic Partnership

The Indian and Canadian flags posed together on a desk against a blurred red background

Photo: iStock / studiocasper

March 3, 2026
SupplyChainBrain

India and Canada have announced a series of agreements covering nuclear energy, technology, critical minerals, space, defense and education, as the two countries look to rebuild ties following years of discord.

BBC News reports that India and Canada are aiming to finalize a trade deal by the end of the year, signaling a reset in relations that have been strained since 2023, over allegations surrounding the killing of a Sikh separatist leader on Canadian soil. At the time, Canada had accused India of playing a role in the killing, prompting both countries to kick out diplomats and halt all trade negotiations. After meeting with Canadian Prime Minister Mark Carney in Delhi on March 2, Indian Prime Minister Narendra Modi committed to restoring trust and resuming talks toward a broader economic partnership.

That includes a goal to reach $50 billion in bilateral trade by 2030, as well as expanded cooperation on critical minerals, artificial intelligence research, joint space missions, and a landmark 10-year deal where Canada would supply uranium to India. The renewed framework is also expected to act as a precursor to reopening formal negotiations toward a broader trade pact that had been frozen in the wake of the diplomatic dispute, while creating new channels for business and academic exchanges. 

Officials from the countries said the agreements will be key to strengthening long term economic stability, and help the nations move forward as "natural partners in technology and innovation," Modi said. Both leaders emphasized that rebuilding commercial and diplomatic trust would be a gradual process, but said that the new agreements would still mark a crucial first step in putting recent tensions behind them.

In recent weeks, Canada and India have also sought to shield themselves from the impacts of Trump administration tariffs. Canada’s own relationship with the U.S. has been tested by threats by President Donald Trump to pull out of the U.S.-Mexico-Canada trade deal, while India paused progress its trade agreement with the U.S. following a Supreme Court ruling that invalidated the bulk of Trump's levies.

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