Prime Minister Mark Carney and Indian Prime Minister Narendra Modi have agreed to commence discussions on a new trade agreement known as a Comprehensive Economic Partnership Agreement. Carney mentioned in a social media update on Sunday that this trade pact could potentially double bilateral trade between Canada and India to $70 billion.
Highlighting India’s status as the world’s fifth-largest economy, Carney expressed optimism about the significant opportunities this presents for Canadian workers and businesses. This development was corroborated by a news release from India’s Ministry of External Affairs, which also disclosed that Modi extended an invitation for Carney to visit India.
Carney’s office confirmed his acceptance of Modi’s invitation to visit India in early 2026, marking a positive shift in the diplomatic relationship between Canada and India following strained ties due to past allegations.
Notably, this agreement follows a recent meeting between Carney and Modi at the G20 summit in Johannesburg, South Africa, marking their second in-person interaction since Carney assumed office, with the previous meeting occurring at the G7 summit in Canada.
India’s high commissioner to Canada, Dinesh Patnaik, emphasized the ongoing discussions between the two nations on trade matters, particularly since the G7 summit. While talks for such a trade deal were initiated 15 years ago, they were downgraded to sector-specific negotiations until 2023 due to the aforementioned allegations.
Modi’s social media post on Sunday morning described the meeting with Carney as highly productive, emphasizing the positive momentum in bilateral relations since their prior encounter at the G7 Summit.
Despite lingering concerns raised by Canadian Security Intelligence Service Director Dan Rogers regarding alleged threats from India, both countries are committed to addressing security issues while nurturing diplomatic ties. Carney emphasized the importance of remaining vigilant against foreign interference and highlighted Canada’s cooperation with Indian authorities on security matters.
The article also touched upon a referendum held by Sikhs for Justice in Ottawa, advocating for an independent Sikh Punjab, or “Khalistan.” The new leader of the Canadian chapter criticized the decision to resume diplomatic relations with India, citing ongoing security challenges faced by the Sikh community. Patnaik, on the other hand, labeled the referendum as a sensitive issue with potential implications for foreign interference in India.
Foreign Affairs Minister Anita Anand clarified the timing of Carney’s meeting with Modi in light of the referendum, assuring that the focus remains on law enforcement, public safety, and security matters. The ongoing dialogue between Canada and India reflects a concerted effort to navigate complex diplomatic relations while addressing shared challenges and opportunities.