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After two years of coolness, warmth has returned in the relations between India and Canada. In the G20 summit, both the countries set a big target of taking the trade to 50 billion dollars by 2030. New partnership in critical minerals, technology and nuclear energy can give a new direction to this relationship.
New Delhi. The talks between Prime Minister Narendra Modi and Canadian PM Mark Carney during the G20 Summit in South Africa brought the two-year stalled economic talks back on track. There has been a sharp improvement in relations between India and Canada after the recent meeting. Both countries agreed to restart negotiations on a ‘high-ambition’ CEPA trade agreement. Its goal is to increase two-way trade from the current $23.66 billion to $50 billion by 2030. This step not only fills new energy in diplomatic relations but also opens new avenues of economic partnership.
Improvement in relations after diplomatic cold, what benefit will India get?
In 2023, relations between the two countries came under strain after a controversial accusation by Canada, which almost brought trade talks to a standstill. With diplomatic talks gradually normalizing in 2025, both the countries have now decided to give a new impetus to trade. This agreement is considered very important for India because it can provide better access to critical minerals like lithium, cobalt and nickel. Which are necessary for battery, electronics and clean energy sectors. Apart from this, partnership is also likely to be strengthened in emerging areas like AI, quantum computing and data center development.
Strong cooperation can be found in energy security and nuclear supply
India is emphasizing on increasing clean energy capacity by increasing nuclear power, in such a situation Canada’s cooperation can play an important role. Canada has already supplied uranium to India, and now both the governments are working towards further strengthening this energy partnership. According to trade experts, this cooperation can prove to be very important for India’s long-term energy security.
Canada will also get a big market, will benefit from skilled talent
Canada has been trying to reduce economic dependence on America for a long time. In such a situation, India can prove to be a big, fast growing and stable market for it. According to the Canadian Trade Minister, his country wants to attract Indian investment in sectors like EV batteries, energy, agriculture, AI and aerospace. India’s STEM talent can help bridge Canada’s skilled-worker shortage. Experts believe that if the CEPA agreement goes ahead, there will be a sharp increase in investment, employment and technology partnership between the two countries.
