Stories
India and Canada Pursue Closer Ties Amid Strategic Shifts and Khalistan Concerns
- •India and Canada are experiencing a strategic opportunity to deepen economic and diplomatic ties, driven by Canada's need to diversify its trade away from the United States.
- •Negotiations for a Comprehensive Economic Partnership Agreement are advancing towards a proposed conclusion by the end of 2026, building on a combined two-way trade of $30 billion in goods and services in 2025.
- •Energy security remains a cornerstone of the relationship, highlighted by a major uranium agreement signed in March 2026 for nearly 22 million pounds of uranium concentrate through 2035.
- •Political distrust and Canadian encouragement of Khalistani separatism remain critical red lines for India, requiring a new political compact for a durable reset.
- •A successful trade agreement must incorporate robust frameworks for people-to-people movement, including clearer post-study pathways and predictable mobility for skilled professionals.
Key Questions Answered
Negotiations for the Comprehensive Economic Partnership Agreement (CEPA) between India and Canada are advancing towards a proposed conclusion as early as by the end of 2026 under the leadership of Prime Minister Mark Carney and Prime Minister Narendra Modi.
In March 2026, India and Canada signed a uranium agreement providing for nearly 22 million pounds of uranium concentrate through 2035, valued at US$1.9 billion. This deal helps diversify India's nuclear fuel procurement and establishes Canada as a long-term supplier.
President Donald Trump's use of tariffs, trade restrictions, and coercive economic nationalism against Canada has created economic vulnerability, prompting Canada to seek market diversification. While India cannot replace the US market entirely, it has become a crucial destination for Canadian energy, minerals, and financial investments.
