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Home»Business News»Canada’s PM Kicks Off Crucial India Trip to Strengthen Trade Ties
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Canada’s PM Kicks Off Crucial India Trip to Strengthen Trade Ties

February 27, 20263 Mins Read
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MUMBAI: Canadian Prime Minister Mark Carney has landed in India, aiming to revitalize the collaboration between the two countries and significantly increase trade. This visit comes in the wake of strained ties stemming from accusations against India related to Sikh activists in Canada.

Carney began his journey in the bustling city of Mumbai, where he plans to meet with business leaders. He will conclude his visit with a meeting with Indian Prime Minister Narendra Modi on Monday.

India’s foreign ministry emphasizes the importance of Carney’s trip, noting that it serves as a crucial step in strengthening the relationship between India and Canada. Ministry spokesperson Randhir Jaiswal remarked that the partnership is based on shared democratic values and growing cooperation in various sectors.

Discussions during Carney’s visit are expected to revolve around enhancing trade, energy, technology, artificial intelligence (AI), cultural exchanges, and defense. Last year, Canada and India had agreed to restart talks on a proposed free-trade agreement, with Carney expressing his ambition to more than double the two-way trade between the countries by 2030, targeting an annual trade value of $51 billion.

Tensions escalated in 2023 when Canada accused India’s government of being involved in the death of Hardeep Singh Nijjar, a Canadian citizen connected to a movement seeking an independent Sikh state. This allegation led to a breakdown in diplomatic relations, with both nations expelling diplomats in 2024. However, relations began to mend after Carney took office in March 2025.

On the topic of Canadian concerns about international repression, Foreign Minister Anita Anand mentioned that these issues remain a priority during their discussions in New Delhi.

As the fastest-growing economy globally, India is keen on attracting foreign investments. Canadian pension and wealth funds have already poured $73 billion into the Indian market. With a growing population of 1.4 billion, India hopes Canada can assist its plans to enhance its nuclear power capacity.

Following his time in India, Carney will head to Australia and Japan, as part of a broader strategy to diversify Canada’s economic relationships and reduce reliance on the United States. In the past, a significant portion of Canadian exports—over 75%—went to the U.S., with trade exceeding $900 billion in 2024.

The Canadian government’s focus under Carney includes strengthening trade ties with Europe and Asia, especially concerning critical mineral supply chains crucial for advanced technology. Currently, China dominates the processing of these rare minerals, a situation that has raised concerns among many nations.

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