India and Canada on Monday signed major agreements on uranium and critical minerals and committed to finalise a Comprehensive Economic Partnership Agreement (CEPA) soon, pledging to raise bilateral annual trade to $50 billion by 2030. Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney framed the new deals as the start of a reset in ties and a broadening partnership across energy, defence, technology and education.
A headline outcome was a $2.6 billion long-term uranium supply pact under which Canada will support India’s civil nuclear energy programme. Leaders also signed a memorandum of understanding on critical minerals to strengthen resilient supply chains for clean energy, electric vehicles and advanced manufacturing — areas in which Canada has substantial deposits of critical and rare-earth minerals.
Modi described the relationship as infused with “new energy, mutual trust and positivity,” and outlined an expanded agenda: cooperation on defence and security, critical technologies, small modular and advanced nuclear reactors, renewables, green hydrogen, and energy storage. The two leaders agreed to establish an India-Canada defence dialogue to deepen military exchanges, maritime domain awareness and defence-industrial collaboration.
On the economic front, Modi said unlocking the full potential of bilateral commerce is a priority and that the CEPA will create new investment and employment opportunities in both countries. He noted that Canada’s pension funds have invested about $100 billion in India, a sign of confidence in India’s growth. Current two-way trade is roughly $13 billion annually.
Both leaders emphasised cooperation against terrorism, extremism and radicalisation, calling them shared global threats that require close collaboration. Modi also raised concerns about the volatile security situation in West Asia, reiterating India’s preference for resolving conflicts through dialogue and diplomacy and emphasizing the safety of Indian citizens in the region.
Carney described the new agreements as the start of a strategic energy partnership with significant potential to expand bilateral energy trade. He highlighted collaboration in clean energy — including wind, solar and hydrogen — and framed the uranium deal as part of a joint commitment to clean, reliable power. Carney said the new critical minerals partnership will cover development, processing and secure supply chains.
Education and research ties were also expanded, with announcements of university partnerships in artificial intelligence, healthcare, agriculture and innovation, and agreements for Canadian universities to open campuses in India.
The outreach follows months of efforts to normalise relations after a severe diplomatic rupture in 2023. Ties deteriorated following Canadian allegations of a possible Indian link to the killing of Khalistani separatist Hardeep Singh Nijjar; India rejected the accusation. In October 2024 both countries recalled and expelled diplomats amid the dispute. Carney’s victory in Canada’s April parliamentary election and subsequent exchanges have helped restart dialogue, and both sides have now posted high commissioners to each other’s capitals.
Modi and Carney also met on the margins of international summits earlier in the year — including talks in Kananaskis — as part of a broader push to rebuild trust and expand cooperation.
Taken together, the agreements signal a multi-sector push to deepen economic ties, diversify energy and mineral supply chains, boost defence collaboration, and broaden people-to-people and academic links as the two nations seek a more resilient and productive partnership toward the 2030 trade target.
