Carney to Visit India as Canada Pushes Trade Diversification

Prime Minister Mark Carney is expected to travel to India in the coming weeks as Canada accelerates efforts to diversify trade partnerships amid growing economic pressure from the United States. The visit marks a significant step in rebuilding Canada–India relations after more than two years of diplomatic strain.

India’s High Commissioner to Canada, Dinesh Patnaik, confirmed the visit will take place after India presents its federal budget on February 1. He said renewed engagement reflects that “trust is back in the system,” with both countries working to restore cooperation after a prolonged diplomatic freeze.

Relations deteriorated in 2023 when former prime minister Justin Trudeau alleged Indian government involvement in the killing of Sikh activist Hardeep Singh Nijjar in Canada. India strongly denied the allegations, which also included RCMP claims of Indian agents being linked to criminal activities in Canada. The dispute led to a sharp downturn in diplomatic ties that only began easing in recent months.

Patnaik said India maintains there is no case against its government and emphasized that the relationship is now moving forward under new political leadership in Ottawa. He added that both countries recognize the importance of resetting ties in a changing global economic environment.

Carney’s India visit follows an agreement with Narendra Modi to restart negotiations on a Comprehensive Economic Partnership Agreement (CEPA), announced during the G20 Summit last November. The proposed deal aims to expand cooperation across key sectors including energy, agri-food, innovation, aerospace, defence, and research and development.

Both Canada and India are facing steep U.S. tariffs under President Donald Trump’s trade policies, increasing the urgency to find alternative markets. India is currently subject to tariffs as high as 50 per cent on some exports, partly due to its purchases of Russian oil.

Patnaik said the renewed talks are driven by shared economic interests, noting that “both countries need each other.” While a finalized trade agreement by the end of the year is not guaranteed, he said meaningful progress would be considered a major success.

Carney’s India trip will follow recent and upcoming trade missions by several cabinet ministers, underscoring Ottawa’s broader strategy to reset strained relationships and reduce reliance on the U.S. market. The prime minister is also set to visit China this week, signaling a wider push to rebalance Canada’s global trade and diplomatic partnerships.