Canada is actively seeking to rebuild and strengthen trade relations with India following a multi-year diplomatic rift, according to Canadian International Trade Minister Maninder Sidhu. His three-day visit to New Delhi marks one of the highest-level trade engagements between the two nations since bilateral negotiations stalled in 2023.

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Productive Talks Between Canadian and Indian Officials

During his visit, Minister Sidhu met with Indian Commerce Minister Piyush Goyal, focusing on areas of mutual economic opportunity, including:

• Aerospace
• Artificial Intelligence (AI)
• Critical minerals
• Energy
• Agriculture

Sidhu described the discussions as “really productive,” emphasizing the desire to expand economic collaboration and attract more Indian investment into Canada.

“This is an opportunity to strengthen our trade relationship and build partnerships that benefit both countries,” Sidhu said, highlighting Canada’s rich resources and technological expertise.

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Context: Diplomatic Strain Over Assassination Allegations

The Canada-India trade relationship has been strained since 2023, following accusations linking the Indian government to the killing of Canadian Sikh separatist leader Hardeep Singh Nijjar in British Columbia. At the time, then-Prime Minister Justin Trudeau cited “credible links” to the Indian government.

India denied the allegations, resulting in mutual expulsion of diplomats and the suspension of visa services between the two countries.

Despite these tensions, Prime Minister Mark Carney, Trudeau’s successor, has prioritized re-engaging India, emphasizing mutual respect, rule of law, and sovereignty in discussions with Indian Prime Minister Narendra Modi.

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Steps Toward Rebuilding Trust

During the G7 summit in Alberta in June 2025, Carney and Modi reaffirmed the importance of Canada-India ties, agreeing to designate new high commissioners to restore regular services for citizens and businesses.

The latest round of discussions in New Delhi further underscores Canada’s commitment to reviving bilateral trade and diplomatic relations.

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Economic Incentives for Cooperation

Both Canada and India are navigating economic uncertainty due in part to U.S. trade tariffs under President Donald Trump, prompting a renewed focus on mutual trade opportunities.

Minister Sidhu highlighted Canada’s potential in the energy and critical minerals sectors, noting, “Canada has every element needed to build an electric battery.” Ottawa aims to attract Indian investment in:

• Mining of critical minerals
• Renewable energy infrastructure
• Advanced manufacturing projects

These initiatives align with Canada’s vision to become a global hub for sustainable energy and technology development, while offering Indian investors a gateway into North American markets.

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Looking Ahead: Building a Stronger Canada-India Partnership

Canada’s renewed engagement with India represents a strategic effort to expand international trade, attract investment, and foster innovation. By focusing on long-term partnerships in energy, technology, and agriculture, both nations hope to overcome past diplomatic challenges and create a framework for mutually beneficial economic growth.

With careful diplomacy and targeted investments, Canada and India aim to transform past tensions into a roadmap for collaboration, ensuring stability and growth in a rapidly changing global economy.