Prime Minister Mark Carney and Indian Prime Minister Narendra Modi announced what they described as a “new partnership” on Monday, unveiling a series of agreements worth billions of dollars and committing to finalize a free trade deal by the end of the year.
Meeting at Hyderabad House in New Delhi, the two leaders said the reset marks a turning point after years of strained relations, including allegations of Indian foreign interference in Canada.
Carney said the agreements are part of Canada’s broader effort to diversify trade and reduce its reliance on the United States. The two countries are aiming to more than double bilateral trade to $70 billion annually by 2030.
At the heart of the new framework is a Comprehensive Economic Partnership Agreement — effectively a free trade deal — which both sides hope to sign by December. Carney said the agreement would provide Canadian exporters relief from India’s high tariffs on certain goods.
“This is not merely the renewal of a relationship. It is the expansion of a valued partnership with new ambition, focus and foresight,” Carney said alongside Modi.
Modi praised Carney’s leadership, crediting him with injecting fresh momentum into the relationship. Reading from prepared remarks, the Indian prime minister said unlocking the full potential of economic cooperation is now a priority.
According to the Prime Minister’s Office, the two leaders signed five memorandums of understanding covering energy, critical minerals, technology and artificial intelligence, talent, culture and defence. The total value of the agreements announced Monday stands at approximately $5.5 billion.
The largest deal is a $2.6 billion agreement between India and Saskatoon-based Cameco to supply nearly 22 million pounds of uranium from 2027 to 2035, strengthening Saskatchewan’s role as a global supplier of nuclear fuel.
Other announcements include:
- HCL Technologies opening new AI centres in Calgary and Mississauga and expanding operations in Vancouver, increasing its Canadian workforce from roughly 3,000 to 5,250.
- Jubilant Pharmanova investing $155 million to triple production at a sterile injectables plant in Kirkland, Que.
- Mumbai-based OCT Therapies & Research expanding pharmaceutical manufacturing in New Brunswick.
- B.C.-based Elk Valley Resources selling 1.2 million tonnes of coal to India in a deal worth hundreds of millions of dollars.
- McCain Foods investing $135 million to expand its potato-processing operations in Gujarat.
Saskatchewan also announced the creation of a joint pulse protein centre of excellence with India, though no tariff relief for Canadian peas and lentils — previously subject to steep Indian duties — was confirmed.
Carney described the agreements as the beginning of “a prosperous, new relationship” that could generate long-term benefits for workers and businesses in both countries. The reset comes after a turbulent period in bilateral ties. Under former prime minister Justin Trudeau, Canada accused Indian agents of involvement in the killing of Canadian Sikh activist Hardeep Singh Nijjar. The RCMP later alleged links to extortion and violence targeting members of the Sikh community.
Several Indian diplomats were expelled following those allegations.
Carney’s office said both leaders agreed to advance cooperation on security and law enforcement, with a focus on tackling illegal drug flows — including fentanyl precursors — and transnational organized crime networks.
The Prime Minister’s Office also said Carney “underscored that Canada will continue to take measures to combat transnational repression.”
Ahead of the trip, a senior government official suggested that Ottawa believes Indian foreign interference activity has ceased. That assessment has sparked concern among some Sikh community members.
Foreign Affairs Minister Anita Anand, speaking in place of Carney after he cancelled a planned press conference, distanced herself from the characterization that interference is over.
“The words of the senior official are not words that I personally would use,” Anand said, while defending continued engagement with India. “We need to engage, we need to have these diplomatic conversations in order to make progress.”
Carney has invited Modi to visit Canada in the near future, signalling that both governments intend to build on what they are framing as a diplomatic and economic breakthrough.
