India, Canada reset ties with landmark uranium pact and $50 bn trade roadmap

India and Canada announced a comprehensive reset of bilateral relations on March 2, sealing several key agreements during Canadian Prime Minister Mark Carney’s visit to India.

The two sides signed a long-term uranium supply agreement, agreed to establish an official India-Canada Defence Dialogue, and set a target to expand annual bilateral trade to $50 billion by 2030.

In a joint statement after talks at the Hyderabad House, Prime Minister Narendra Modi and Carney highlighted that the agreements represent a “new era” in ties between New Delhi and Ottawa, and underscored shared interests in economic growth, energy security and strategic cooperation.

Under the uranium pact, Canada — one of the world’s leading producers of uranium — will supply India with reliable fuel for its civil nuclear energy programme, supporting India’s expanding nuclear capacity needs.

The leaders also announced progress toward a Comprehensive Economic Partnership Agreement (CEPA), which they aim to conclude by the end of 2026.

The pact is intended to accelerate trade and investment ties, double current bilateral trade from under $10 billion to $50 billion by 2030 and open up new avenues for cooperation in sectors such as critical minerals, clean energy, technology and services.

A fresh defence dialogue framework will strengthen military and strategic cooperation between the two democracies, addressing areas of common interest including maritime domain awareness, advanced technologies and security partnerships.

Both countries emphasised that renewed defence engagement underscores the broader agenda of trust and mutual respect that now guides bilateral relations.

The reset comes after several years of diplomatic tension following allegations by Ottawa in 2023 regarding India’s domestic security policies — claims New Delhi strongly denied.

Those strains resulted in stalled trade talks and reduced diplomatic engagement. Carney’s visit — his first official trip to India as Canadian prime minister — marks a clear effort to move past those disputes.

During talks, both leaders also discussed cooperation in areas such as education, artificial intelligence, innovation, and clean energy technologies, signalling a shift toward deeper, sector-wide engagement rather than purely commercial ties.

This broader agenda reflects both countries’ ambitions to diversify economic partnerships beyond traditional markets and foster resilience in supply chains.

Modi expressed optimism about the partnership’s future, saying the agreements would create new investment and job opportunities while reinforcing India’s energy security and industrial growth.

Carney, for his part, described the renewed engagement as beneficial for Canadian businesses and a demonstration of Ottawa’s commitment to forging “a strategic and enduring partnership” with India.