World

Narendra Modi and Mark Carney Seal 10-Year Nuclear Pact in Bid to Rebuild India–Canada Relations

India and Canada have taken a decisive step toward restoring fractured diplomatic ties, unveiling a sweeping set of agreements anchored by a decade-long nuclear energy partnership.

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The breakthrough came during high-level talks in New Delhi between Indian Prime Minister Narendra Modi and his Canadian counterpart, Mark Carney. Their meeting signals a turning point after relations deteriorated sharply following allegations by former Canadian Prime Minister Justin Trudeau that New Delhi was linked to the 2023 killing of Sikh activist Hardeep Singh Nijjar in Canada — claims India firmly denied.

Diplomatic tensions had led to tit-for-tat expulsions of officials and a freeze in visa services, pushing bilateral engagement to near paralysis. However, under Carney’s leadership, both governments have opted for cautious re-engagement, even as legal proceedings continue against four men charged in Nijjar’s death.

At the centre of the renewed cooperation is a landmark civil nuclear agreement. Modi announced that Canada will supply uranium to fuel India’s expanding energy needs, while both sides will collaborate on next-generation nuclear technologies, including small modular reactors. The two leaders also committed to deeper collaboration in artificial intelligence, semiconductors, supercomputing, space research, defence, education and critical minerals.

Carney described the talks as a major reset, noting that official engagement over the past year has surpassed that of the previous two decades combined. He also unveiled plans for a broader “strategic energy partnership,” positioning Canada as a key contributor to India’s growing demand for reliable energy.

Trade emerged as another pillar of the renewed relationship. The leaders set an ambitious target of $50 billion in bilateral trade and pledged to conclude a long-delayed comprehensive economic partnership agreement by the end of 2026. Negotiations on the deal have stretched over 15 years, and finalising it would mark a significant diplomatic achievement for both nations.

Both countries are seeking to shield their economies from the impact of punitive US tariffs by diversifying trade partnerships. For India, expanding ties with Canada also aligns with its efforts to reduce energy dependence on Russia. For Canada, strengthening economic links with India offers access to one of the world’s fastest-growing major economies and its vast consumer market.

Despite the diplomatic thaw, security concerns linger. Canada’s intelligence agency recently reaffirmed its assessment that India remains among countries engaged in foreign interference and espionage activities in Canada — alongside Russia, China and Iran. Canadian Foreign Minister Anita Anand, speaking in Delhi, acknowledged differing views within Canada but defended continued dialogue as essential to progress.

Carney’s visit began in Mumbai with meetings aimed at expanding trade and investment and will continue with stops in Australia and Japan as part of a broader strategy to deepen Canada’s Indo-Pacific partnerships.

While skepticism persists among some members of Canada’s Sikh community and political circles, public opinion appears more receptive to renewed engagement. Recent polling suggests a growing number of Canadians view strengthening ties with India as both timely and pragmatic.

By prioritising economic cooperation and energy security, both governments are signalling that shared strategic interests may now outweigh the diplomatic rift that once threatened to permanently derail relations.