Canada and India are moving to repair and rebuild their trade relationship after a two-year diplomatic freeze, with Ottawa eager to restart negotiations under what it calls “a new process,” International Trade Minister Maninder Sidhu said Thursday in New Delhi.
Sidhu, in India for a three-day visit, held a wide-ranging meeting with Commerce Minister Piyush Goyal that he described as “very productive.” Their discussion touched on key sectors where both countries see immediate opportunity, including critical minerals, clean energy, agriculture, aerospace and artificial intelligence. “The meeting went really well,” Sidhu told Reuters, adding that both sides explored what more they “can do together.”
His trip marks the highest-level trade engagement since Canada halted talks on a comprehensive agreement in 2023, after relations deteriorated when Ottawa accused New Delhi of involvement in the killing of a Canadian Sikh separatist. Now, Sidhu says the two countries are “in early discussions to restart the process,” noting that shifting global trade dynamics—including new U.S. tariffs on goods from both Canada and India—have added fresh urgency.
Sidhu emphasized that the newly elected government under Prime Minister Mark Carney has brought “a new focus, new energy, and new mandate.” Carney’s team sees India as a major partner in securing investment and in developing Canada’s critical minerals and clean-energy sectors. “Canada has every element needed to build an electric battery,” Sidhu said, highlighting opportunities for Indian investment in mining and infrastructure projects.
Relations have gradually improved since Carney and Indian Prime Minister Narendra Modi met on the sidelines of the G7 Summit in June. India remains a priority market for Canada, with two-way goods and services trade reaching about $31 billion in 2024. Canada holds a strong advantage in services exports and continues to attract significant Indian interest: in 2024 alone, nearly 393,000 Indian students studied in Canada, and more than 1.8 million Canadians claim Indian heritage.
Sidhu also met with senior executives from major Indian conglomerates, including Tata, who expressed enthusiasm for expanding operations in Canada. He added that Minister Goyal plans to lead a trade and investment delegation to Canada in the near future, signalling a rapidly warming commercial relationship between the two countries.