India has formally invited Canadian Prime Minister Mark Carney to New Delhi for high-level discussions with Prime Minister Narendra Modi early next year.

The invitation, reported by The Globe and Mail, aims to revitalise bilateral trade and lay the groundwork for a comprehensive free-trade and economic partnership between the two nations.

India’s newly appointed High Commissioner to Canada, Dinesh Kumar Patnaik, confirmed that both countries are making a “sincere effort” to normalise strained diplomatic relations and prioritise trade and investment. These efforts come amid ongoing tariff frictions between India and the United States.

Patnaik noted that bilateral trade could surpass USD 50 billion annually if a wide-ranging trade deal is finalised. He added that New Delhi is keen on hosting Prime Minister Carney soon, emphasising that the India–Canada relationship “should not be allowed to go downhill”.

Bilateral trade negotiations were stalled in late 2023 after then-Prime Minister Justin Trudeau alleged Indian involvement in the killing of Sikh activist Hardeep Singh Nijjar in Surrey, British Columbia. 

This accusation led to the expulsion of diplomats by both sides, severely straining ties. India consistently denied any role in Nijjar’s death, calling the claims baseless and politically motivated.

Relations began improving after Prime Minister Modi and Prime Minister Carney met during the G7 Summit in Alberta in June 2025. Since then, both governments have sustained diplomatic dialogues to address security concerns and restore trust, particularly in economic spheres.

Carney has been invited to attend the Artificial Intelligence Action Summit scheduled for February 2026 in New Delhi, where heads of government, global CEOs, and AI leaders are expected to gather. On the sidelines, PM Modi is likely to hold bilateral talks with Carney focused on economic cooperation, digital trade, and the resumption of free-trade negotiations.

Patnaik expressed optimism that Carney will visit before March, noting that the months following would be too politically and climatically crowded for meaningful engagement.

Trade between India and Canada reached USD 23.6 billion in 2024 — a sharp rise from USD 12.7 billion in 2023. Patnaik remarked that a formal trade agreement could easily double this figure, provided both parties maintain an enabling environment.

India is particularly keen to import Canadian commodities such as oil, gas, nuclear materials, fertilisers, and processed foods, alongside facilitating cooperation in artificial intelligence and quantum computing.

The High Commissioner highlighted India’s growing demand for cooking oil, suggesting that Canadian canola could penetrate the Indian market, reducing Ottawa’s reliance on Chinese buyers following Beijing’s recent trade restrictions. However, he observed that targeted marketing would be required to align Canadian exports with Indian consumer preferences for sunflower, mustard, and palm-based oils.

India has also shown interest in investing in Canadian energy and critical minerals, contingent on Ottawa providing transparent investment rules, environmental safeguards, and clarity on indigenous land rights. Patnaik commended Prime Minister Carney’s creation of a fast-track Major Projects Office in Calgary, describing it as a step in the right direction for facilitating business confidence.

He underscored, however, that India would not indefinitely wait for Canadian suppliers, cautioning that “if Canada does not come, we will find other partners.”

Canadian Foreign Affairs Minister Anita Anand’s recent visit to New Delhi produced a joint declaration focused on law enforcement and the rule of law, laying a foundation for reinforced trade and economic partnerships. Patnaik confirmed that Indian and Canadian security agencies are now exchanging intelligence and exploring deeper cooperation with the RCMP and CSIS.

He again rejected claims of India’s involvement in Nijjar’s killing and criticised Canada’s tolerance of extremist Sikh groups promoting Khalistan. The High Commissioner recounted personal threats from separatist elements outside his residence in Canada, which he described as deeply distressing for his family.

Patnaik concluded by asserting that transparent dialogue and security cooperation are essential to preventing manipulation of diaspora politics from undermining the bilateral relationship.

Based On ANI Report