India–Canada Resume Diplomatic Talks After Two Years; PM Carney Pushes Trade Ties

India and Canada have agreed to resume diplomatic talks for a new bilateral trade agreement, an Indian government official said Sunday. Canadian Prime Minister Mark Carney met Prime Minister Narendra Modi on the sidelines of the G20 Summit in Johannesburg, South Africa.

“The leaders agreed to begin negotiations on a high-ambition Comprehensive Economic Partnership Agreement (CEPA), aimed at doubling bilateral trade to USD 50 billion by 2030,” the Prime Minister’s Office (PMO) said in a statement.

Both sides also reaffirmed their longstanding civil nuclear cooperation, highlighting plans to expand collaboration, including long-term uranium supply arrangements, Reuters reported. The renewed diplomatic engagement comes as Ottawa seeks to diversify trade beyond the United States. Carney has pledged to double Canada’s non-US exports over the next decade.

“Prime Minister @narendramodi and I met at the G20 Summit today and launched negotiations for a trade deal that could more than double our trade to more than C$70 billion,” Carney posted on X, calling India the world’s fifth-largest economy and a major opportunity for Canadian businesses.

A Gradual Thaw After Years of Tension

Relations between Ottawa and New Delhi had deteriorated sharply over the past two years, particularly after tensions over Sikh separatists in Canada. Ottawa expelled Indian High Commissioner Sanjay Kumar Verma and five other diplomats, prompting New Delhi to expel six Canadian diplomats, including the acting high commissioner. The dispute intensified after the June 2023 killing of Sikh separatist leader Hardeep Singh Nijjar in British Columbia.

Strains date back further. In 2018, Canadian Prime Minister Justin Trudeau’s India visit was overshadowed by the invitation of Jaspal Singh Atwal—a former member of a banned Sikh separatist group—to an official event. India has long criticised what it sees as Canadian leniency toward pro-Khalistan activities among the diaspora.

In 2020, tensions resurfaced during India’s farmers’ protests, when Trudeau expressed concern over the situation. India called his remarks “ill-informed” and “unwarranted,” stressing that the issue was an internal matter. In 2023, Canada paused trade negotiations and later recalled 41 diplomats after India indicated it would revoke diplomatic immunity for their families. Ottawa also arrested three Indian nationals linked to Nijjar’s murder, while New Delhi dismissed Canada’s allegations of Indian involvement as “absurd.”

Trade Ties Remain Strong

Despite political tensions, bilateral trade surpassed $30 billion in 2024, with India emerging as Canada’s seventh-largest goods and services trading partner. Modi said both sides will strengthen cooperation in defence and space. Carney described India as a reliable partner while acknowledging that “sources of friction” remain.