Mark Carney Visits India to Reset Ties and Boost Trade Relations with Narendra Modi
Mumbai/New Delhi: Canadian Prime Minister Mark Carney has begun a key diplomatic visit to India aimed at repairing strained relations and strengthening trade cooperation, as both nations seek to reduce economic dependence on the United States.
Carney started his trip in Mumbai, India’s financial capital, where he is meeting business leaders to explore investment and economic opportunities. He is scheduled to travel to New Delhi for talks with Prime Minister Narendra Modi, with trade, technology, energy, artificial intelligence, and defence expected to dominate discussions.
Resetting strained diplomatic relations
The visit marks a significant shift in relations between the two countries, which deteriorated sharply in 2023 after Canada accused India of involvement in the killing of Sikh separatist Hardeep Singh Nijjar on Canadian soil. India strongly denied the allegations, and the issue strained diplomatic and trade engagement.
Despite lingering tensions, both sides are now working toward rebuilding ties. Canadian officials said the two nations are engaged in “robust discussions” on national security and foreign interference, adding that Ottawa does not currently believe India is linked to violent threats within Canada.
However, concerns remain among some members of Canada’s Sikh community, who have criticised Carney’s government for prioritising economic interests over security concerns.
Focus on trade diversification
Carney’s visit comes as Canada faces growing economic pressure from US tariffs and seeks to diversify its trade partnerships. A key priority is advancing negotiations on a long-pending comprehensive free trade agreement with India, which has been under discussion intermittently for over 15 years.
Canada remains the only G7 nation without a preferential trade agreement with India, adding urgency to the talks.
Carney’s itinerary reflects a business-focused approach. Unlike previous Canadian leaders, he will not visit cultural landmarks or Punjab, signalling a clear emphasis on economic cooperation rather than domestic political outreach.
Strategic and economic priorities
Discussions between the two leaders are expected to cover expanding cooperation in emerging sectors, including artificial intelligence, clean energy, and technology. Both leaders are also likely to address the impact of US tariff policies on their economies.
Canada has made several diplomatic efforts to restore relations since Carney took office, including inviting Modi to the G7 summit in Alberta and holding high-level meetings between senior officials of both countries.
Analysts say the visit represents a delicate diplomatic balancing act for Canada, while offering India an opportunity to strengthen global partnerships and expand trade ties with a major Western economy.
The trip is seen as a crucial step toward rebuilding trust and unlocking economic opportunities, as both nations seek closer cooperation amid shifting global trade dynamics.