Mark Carney’s India Visit May Reset Trade Ties

Canadian Prime Minister Mark Carney is set to visit India from February 27 to March 2, 2026, in what officials describe as a significant moment for restoring and strengthening bilateral ties.

The visit comes after relations between India and Canada deteriorated in September 2023 over allegations related to the killing of a Khalistan leader in Canada. The diplomatic fallout had led to the suspension of negotiations on a proposed free trade agreement (FTA).

Now, both sides appear ready to re-engage.

Possible Revival of FTA Talks

According to the Global Trade Research Initiative (GTRI), one of the most important outcomes of Carney’s visit could be the formal revival of negotiations for an India–Canada Free Trade Agreement.

GTRI founder Ajay Srivastava noted that both countries have strong economic reasons to move forward. Canada is seeking to diversify its trade beyond heavy dependence on the United States, while India is looking for stable markets and secure access to energy and critical minerals.

Because India and Canada largely trade complementary goods rather than competing products, an FTA could potentially expand trade in sectors such as agri-food, clean energy, pharmaceuticals, and mining.

Current Trade Snapshot

Bilateral trade between India and Canada reached around $7.8 billion in 2025.

India’s exports, valued at about $4.5 billion, include pharmaceuticals, textiles, machinery, and gems and jewellery. Canada’s exports to India, worth roughly $3.3 billion, primarily consist of pulses, timber, pulp and paper, and mining-related products.

Experts believe a trade pact could significantly enhance these flows and encourage greater investment on both sides.

Energy and Uranium Cooperation

Another key development expected during the visit is progress toward a long-term uranium supply agreement. Such a deal would support India’s expanding nuclear power programme, particularly in light of recent sector reforms under the SHANTI Act, 2025.

For Canada, a uranium agreement would provide a stable export destination beyond the US market.

Energy security and critical minerals are likely to feature prominently in discussions between Carney and Indian Prime Minister Narendra Modi.

Visit Agenda: Mumbai to New Delhi

Carney’s four-day trip will begin in Mumbai, where he is expected to attend business events and interact with industry leaders, financial professionals, and innovators from both countries.

He will then travel to New Delhi for delegation-level talks with PM Modi. The two leaders are expected to review progress under the India-Canada Strategic Partnership and discuss regional and global developments.

India’s Ministry of External Affairs has indicated that the visit takes place at an important stage in efforts to restore normal diplomatic engagement.

A Strategic Reset?

The timing of the visit is notable. India has recently signed multiple trade agreements and announced a trade deal framework with the United States, although uncertainties remain around aspects of that agreement.

For Canada, deeper engagement with India offers diversification opportunities in one of the world’s fastest-growing major economies. For India, Canada remains a key partner in education, clean energy, agri-food trade, and critical minerals.

While outcomes will depend on negotiations, Carney’s visit could mark the beginning of a more stable and forward-looking chapter in India-Canada economic relations.