India-Canada Relations Revived – Explained

India-Canada Relations Latest News

• India and Canada have agreed on a series of measures to restore bilateral ties and enhance cooperation across trade, energy, technology, and agriculture.

India-Canada Relations: A Historical Overview

• India and Canada share a long-standing relationship built on shared democratic values, Commonwealth ties, and people-to-people connections. 
• Diplomatic relations were established in 1947, soon after India’s independence, with cooperation historically spanning education, agriculture, nuclear energy, and trade.
• Trade and Economic Relations
  • Bilateral trade between the two nations has grown steadily. In 2024, two-way trade stood at $33.9 billion, with Canada’s merchandise exports to India valued at $5.3 billion. 
  • India imports Canadian commodities such as fertilisers, pulses, and energy products, while exporting pharmaceuticals, textiles, and IT services. 
  • Canada’s pension funds are among the largest foreign investors in India, particularly in infrastructure and renewable energy.
• Indian Diaspora and Cultural Linkages
  • The Indian diaspora in Canada, numbering over 1.6 million, represents one of the largest and most influential immigrant communities. 
  • Indian-origin Canadians play a major role in politics, business, and academia. 
  • Educational partnerships are also strong, with over 3 lakh Indian students studying in Canada, making India the top source of foreign students there.
• Recent Strains in Relations
  • Despite historic goodwill, ties suffered a major setback in 2023, when then Prime Minister Justin Trudeau accused the Indian government of involvement in the killing of Khalistani separatist Hardeep Singh Nijjar. India rejected the allegations as “absurd and politically motivated,” leading to the downgrading of diplomatic relations, suspension of trade talks, and expulsion of diplomats.
  • However, with the change in Canada’s leadership under Prime Minister Mark Carney, both sides have sought to move forward, emphasising mutual respect, sovereignty, and constructive engagement.

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News Summary

• Restoring Bilateral Ties through Strategic Dialogue
  • India and Canada have agreed on a series of concrete measures to restore and strengthen bilateral ties following talks between External Affairs Minister S. Jaishankar and Canadian Foreign Minister Anita Anand in New Delhi on October 13, 2025.
  • The discussions, the first high-level visit by a Canadian Foreign Minister in over two years, focused on reviving cooperation across multiple sectors, including trade, investment, energy, technology, civil nuclear collaboration, artificial intelligence (AI), and agriculture.

Key Agreements and Announcements

• Relaunch of Trade Talks
  • Both countries agreed to restart ministerial-level discussions on bilateral trade and investment, with a view to framing a new Comprehensive Economic Partnership Agreement (CEPA). The plan aims to replace earlier, stalled negotiations and align with India’s newer FTAs signed with partners like the UAE and EFTA nations.
• Re-establishment of Energy Dialogue
  • The Canada-India Ministerial Energy Dialogue (CIMED) has been revived to deepen cooperation in clean energy, including green hydrogen, carbon capture technologies (CCUS), biofuels, and electric mobility. The two sides also agreed to promote LNG and LPG trade and strengthen critical mineral supply chains, vital for clean technology development.
• Civil Nuclear Cooperation
  • Talks will continue on civil nuclear collaboration, with a focus on the supply of Canadian uranium to support India’s clean energy transition. A Critical Minerals Annual Dialogue will also be held in Toronto in March 2026 to further cooperation in this sector.
• Agricultural and Food Systems Collaboration
  • Both nations are committed to enhancing cooperation in climate-resilient agriculture, agri-value chains, and nutritional security. The agreement emphasises recycling of agricultural waste, technology exchange, and improving food system sustainability.
• Science, Technology, and AI Cooperation
  • A major highlight was the relaunch of the Joint Science and Technology Cooperation Committee, focusing on AI, digital infrastructure, and cybersecurity. 
  • Canada was invited to participate in India’s AI Impact Summit (February 2026). Additionally, Canada’s AI companies and researchers will collaborate on digital public infrastructure and inclusive AI initiatives.

Diplomatic and Strategic Significance

• The meeting underscored a mutual desire to rebuild trust and de-risk the bilateral relationship from the fallout of earlier controversies. 
• The joint statement highlighted “respect for each other’s concerns and sensitivities”, a veiled acknowledgement of India’s stance on Khalistan-related extremism on Canadian soil.
• The leaders also discussed Canada’s possible participation in India’s upcoming AI Summit, and an invitation for Prime Minister Mark Carney to visit India in early 2026.

Broader Context and Global Implications

• Both sides emphasised that the revival of India-Canada relations comes at a crucial time amid global geopolitical uncertainty and shifting economic alliances. 
• As members of the G20 and the Commonwealth, India and Canada share common interests in multilateral reform, climate action, and Indo-Pacific stability.
• By strengthening trade, technology, and clean energy partnerships, the two democracies aim to restore strategic stability, create resilient supply chains, and expand opportunities for mutual growth and innovation.

Source: TH | IE