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Modi and Carney accelerate diplomatic engagement as India and Canada work towards a landmark trade agreement. (Img: Pinterest)
New Delhi: India and Canada are accelerating efforts to strengthen economic and strategic ties, with Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney agreeing to advance negotiations for a Comprehensive Economic Partnership Agreement (CEPA). The October 13 telephone conversation comes amid a flurry of high-level diplomatic engagements, expanding business contacts and renewed security cooperation between the two countries.
The immediate focus is to conclude the proposed trade agreement at the earliest opportunity and double bilateral trade by 2030. The discussions have gained significance as Canadian ministers and a major business delegation engage with Indian counterparts in New Delhi, while Modi's proposed December visit to Canada could provide a crucial opportunity to advance the negotiations.
The developments also signal a potential turning point in relations that deteriorated sharply following the diplomatic dispute over the 2023 killing of Khalistan separatist Hardeep Singh Nijjar in Canada.
During their telephone conversation, Modi and Carney welcomed the growing engagement between India and Canada over the past year and agreed to build on the improving diplomatic momentum.
The discussions covered trade, energy, technology, finance, defence, security, artificial intelligence and people-to-people exchanges. Both leaders also discussed geopolitical instability in the Indo-Pacific region and the importance of trusted international partners in energy and agriculture.
Carney acknowledged Modi's efforts to pursue a peaceful resolution to Russia's war on Ukraine, according to the Canadian government's official readout. The leaders also agreed to remain in close contact ahead of Modi's planned December visit to Canada.
The Canadian government has confirmed the proposed visit, which is expected to coincide with Modi's travel for the G20 summit in the United States. His last visit to Canada was in June 2025 for the G7 Summit, making the planned December trip an important opportunity to consolidate the diplomatic recovery.
The Comprehensive Economic Partnership Agreement has emerged as the principal economic priority in the renewed relationship. India and Canada are in the fifth round of negotiations, with the proposed pact expected to improve market access, encourage investment and strengthen commercial cooperation.
Both countries are targeting bilateral trade worth 70 billion Canadian dollars by 2030, with the broader objective of doubling two-way trade. The agreement could open additional opportunities for Indian exporters, Canadian businesses, investors and companies seeking new international markets.
Union Commerce and Industry Minister Piyush Goyal has held discussions with Canadian International Trade Minister Maninder Sidhu to advance the negotiations. The two sides are working towards a balanced and mutually beneficial framework that expands trade and investment opportunities.
Sidhu is leading Canada's largest corporate trade delegation to India in more than three decades, with approximately 300 delegates exploring potential partnerships across aerospace, clean energy, technology, life sciences, agri-food and forestry.
The visit is expected to facilitate business-to-business engagement, identify joint-venture opportunities and encourage investment across emerging and established industries. For India, the discussions offer an opportunity to expand exports and strengthen access to Canadian capital, technology and expertise.
Canadian Foreign Affairs Minister Anita Anand is also visiting New Delhi. Her engagements with External Affairs Minister S. Jaishankar and other senior officials are expected to focus on trade, energy, defence, security, innovation and people-to-people relations.
Meanwhile, India is reportedly considering inviting Carney as the chief guest for the Republic Day celebrations in January 2027. However, an official confirmation of such an invitation has not been announced. If the visit materialises, it could provide another high-profile platform for strengthening bilateral ties.
Alongside trade, India and Canada are working to rebuild cooperation on security and law enforcement, a particularly sensitive area following the Nijjar controversy.
Relations deteriorated in 2023 after then Canadian Prime Minister Justin Trudeau alleged a potential Indian link to Nijjar's killing. India rejected the allegation. In October 2024, New Delhi recalled High Commissioner Sanjay Kumar Verma and five other diplomats after Ottawa sought to link Indian officials to the investigation. India subsequently expelled an equal number of Canadian diplomats.
Carney's electoral victory in April 2025 helped create conditions for renewed engagement. Both countries have since restored high commissioner-level representation, while Carney's March 2026 visit to India further strengthened the diplomatic reset.
The latest Modi-Carney conversation followed Canadian Senior Diplomatic and International Affairs Adviser David Morrison's October 5–7 visit to India. Morrison met National Security Adviser Ajit Doval in New Delhi on October 6 to review bilateral security cooperation and implementation of the shared Security Work Plan concluded in February 2026.
The discussions covered counterterrorism, violent extremism, transnational organised crime, human and drug trafficking, cybercrime, extortion and the extradition of criminal offenders. Both sides also explored structured dialogue on cybersecurity and economic security, while reviewing opportunities to develop a more substantive defence relationship.
The engagement forms part of the bilateral security dialogue at the national security adviser level, following earlier meetings in New Delhi in September 2025 and Ottawa in February 2026.
