With Trump’s US ‘Not Normal’, Canada Bets Big on India for Energy and Minerals

As global trade realigns under mounting pressure from the United States, Canada is increasingly turning to India as a strategic partner in energy, nuclear fuel and critical minerals, signalling a major diplomatic and economic pivot away from traditional North American dependence.

Speaking at India Energy Week in Goa, Canadian Energy and Natural Resources Minister Tim Hodgson said India’s surging energy demand presents a major opportunity for Canada, which holds vast reserves of oil, gas and critical minerals. Despite producing around six percent of the world’s oil, Canada currently supplies less than one percent of India’s crude needs—an imbalance both sides now want to correct.

The renewed engagement comes against the backdrop of growing uncertainty in Washington under US President Donald Trump, whose aggressive tariff policies have unsettled allies and rivals alike. Canada faces steep trade barriers, while India is also grappling with elevated US tariffs, including penalties linked to Russian oil purchases.

Canadian Prime Minister Mark Carney has openly acknowledged the shift, stating that relations with the US are no longer predictable. Ottawa is now actively seeking to diversify partnerships, with India emerging as a key pillar of that strategy. Carney is expected to visit India in March, with discussions likely to cover uranium supply, gas trade and long-term energy cooperation.

For New Delhi, the timing aligns with its ambitious energy transition goals. India aims to reach 100 gigawatts of nuclear capacity by 2047, a target championed by Prime Minister Narendra Modi. Canada’s uranium reserves could play a crucial role in meeting that objective. India’s Petroleum and Natural Gas Minister Hardeep Singh Puri confirmed that India is keen to invest in Canadian critical mineral extraction, with a delegation expected to visit Canada soon. State-run Oil India Limited is part of a broader push to secure lithium, cobalt and rare earth elements essential for electric vehicles, renewable energy infrastructure and defence manufacturing.

The deepening India–Canada engagement follows New Delhi’s landmark free trade agreement with the European Union, creating a combined market of nearly two billion people. Together, these moves underscore India’s growing role as a preferred partner for economies looking to “de-risk” their future amid geopolitical volatility.

With China dominating global critical mineral supply chains, both countries see value in cooperation rooted in democratic systems, long-term stability and mutual strategic interest—marking a decisive shift in the global energy and trade order.