Why Canada PM Carney’s India visit could mark a turning point in bilateral & trade ties - explained

Canadian Prime Minister Mark Carney’s upcoming visit to India may prove to be a turning point in bilateral ties between the two countries after three years. Carney will be in India from February 27 to March 2, 2026.

Ties between the two countries had deteriorated sharply in September 2023 following allegations regarding India’s role in the killing of a Khalistan leader in Canada, which also led to the suspension of negotiations on a proposed free trade agreement. The visit comes at a time when India has sealed several free trade agreements in the last year. A trade deal with the US has also been announced, with tariffs on Indian exports reduced to 18% - however the fate of the agreement remains uncertain after the American Supreme Court struck down the reciprocal tariffs imposed by the Donald Trump administration.

India-Canada Bilateral Ties Reset

According to a report from Global Trade Research Initiative (GTRI), Carney’s visit is expected to have two major outcomes: the most significant of which could be the formal revival of negotiations for an India–Canada Free Trade Agreement.

The two sides may also express a political commitment to finalize the agreement within a specified timeline.

“Both countries have strong economic reasons to move forward: Canada wants to diversify trade beyond its heavy reliance on the United States, while India is seeking stable markets, and secure access to energy and critical minerals,” notes GTRI founder Ajay Srivastava.

Bilateral trade between India and China has shown consistent growth. It reached about $7.8 billion in 2025. India’s exports stood at around$4.5 billion and included pharmaceuticals, gems and jewellery, textiles, and machinery.

Canada’s exports were at around $3.3 billion, mainly comprising pulses, timber, pulp and paper, and mining-related products.

Because the two countries trade largely complementary goods rather than competing products, an FTA could significantly expand trade and investment, especially in agri-food, clean energy, critical minerals, etc, says GTRI.

Another key development from the visit could be the conclusion of a long-term uranium supply agreement that is aimed at supporting the expansion of India’s nuclear power sector. For Canada, such an arrangement would provide a stable and dependable export market for uranium beyond the United States.

The importance of the agreement is heightened by recent reforms in India’s nuclear sector under the SHANTI Act, 2025, which are intended to attract foreign technology partners and speed up the deployment of advanced reactors and small modular reactors. A reliable supply of uranium from a trusted partner would be essential to support the planned increase in reactor capacity.

Mark Carney’s India Visit: What’s On Agenda?

India has said that the upcoming discussions between PM Narendra Modi and Mark Carney are expected to help strengthen a future-oriented partnership between the two countries.

Carney is scheduled to begin a four-day trip to India on Friday, marking his first official visit to the country since assuming office as prime minister.

The primary objective of the visit is to inject fresh energy into bilateral relations. The Canadian leader will first travel to Mumbai, where he is set to attend a series of business-related events and hold interactions with prominent Indian and Canadian industry representatives, financial professionals and innovators.

He will then reach New Delhi on Sunday, with comprehensive talks between the two prime ministers planned for Monday.

According to the Ministry of External Affairs, the two leaders will assess the progress made in various sectors under the India-Canada Strategic Partnership, building on their previous interactions in Kananaskis in June last year and Johannesburg in November.

The ministry noted that the visit takes place at a significant stage in the process of restoring normal ties between India and Canada.