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Beyond The Frictions: Modi, Carney Chart A New Course For India-Canada Bilateral Relations

The India-Canada relations are currently undergoing a major diplomatic reset. This follows a period of strained ties under former PM Justin Trudeau.

Beyond The Frictions: Modi, Carney Chart A New Course For India-Canada Bilateral Relations
File image of PM Modi with Canadian counterpart Mike Carney.
(Photo: Wikimedia Commons)

Canadian Prime Minister Mark Carney will be on an official visit to India from Feb. 27-Mar. 2. It is Carney's first official trip to India since taking office in March 2025. Following his stop in India, Carney is scheduled to travel to Australia and Japan as part of a nine-day Indo-Pacific tour.

Carney will visit Mumbai on Feb. 27-28 where he will meet with Indian CEOs, financial experts, and representatives from Canadian Pension Funds to discuss investment and infrastructure. He will then be in New Delhi on March 1-2 for high-level talks with PM Narendra Modi and will participate in the India–Canada CEOs Forum. 

Facing trade pressures and tariffs from the United States, Canada is pivoting toward India to diversify its economy and secure new markets for energy, critical minerals, and agriculture. Negotiations for a Comprehensive Economic Partnership Agreement (CEPA) have officially restarted, with a goal to double bilateral trade to $70 billion by 2030.

 The Australia-Canada-India Technology and Innovation (ACITI) Partnership was officially launched by Prime Ministers Narendra Modi, Anthony Albanese, and Mark Carney on the sidelines of the G20 Summit in Johannesburg on Nov. 22, 2025.  This trilateral initiative is designed to leverage the complementary strengths of the three nations—such as Australia's critical minerals, Canada's advanced AI research, and India's digital talent—to address shared global challenges. Multiple deals are expected in nuclear power (expanding uranium shipments), heavy crude oil, critical minerals, AI, and quantum computing. To reiterate their commitment to collaborating on trusted AI deployment, ministers from the three countries recently held a trilateral meeting on Feb. 19, 2026, during the AI Impact Summit held in New Delhi.

ALSO READ: India, Canada To Sign Immense' Range Of Deals During Carney Visit

Canada and India relations are currently undergoing a major diplomatic reset. This follows years of strained relations under former Prime Minister Justin Trudeau due to allegations linking Indian agents to the 2023 killing of Hardeep Singh Nijjar. Ahead of the trip, Canadian officials indicated a significant shift in stance, stating they no longer believe the Indian government is linked to ongoing violent crimes in Canada—a major departure from the 2023 allegations surrounding the Nijjar case.

One important step has been the reinstatement of High Commissioners. Following a meeting between Indian Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney at the G7 Summit in June 2025, both nations agreed to appoint new top diplomats. By August 2025, India appointed Dinesh K. Patnaik as its new High Commissioner to Canada, while Canada named Christopher Cooter as its envoy to India. Both nations have resumed high-level security dialogues to address previous tensions, with High Commissioner Patnaik noting an "unprecedented" security dialogue is now in place. 

India-Canada student and immigration issues persist, characterised by a massive drop in approved visas for Indians, with rejection rates for student visas reaching as high as 80% due to tighter caps on international students. Canada is reducing immigration to address housing shortages and infrastructure strain, with new study permits projected to drop significantly. Reports indicate an approximate 80% rejection rate for Indian student visas between 2025 and 2026, marking a record high. While some opportunities remain for Master's in Research programs, overall, the "study, work, stay" pathway has become much more difficult for Indian applicants. This issue needs to be addressed during high level talks.

This issue, too, can be resolved as both sides are working on an ambitious, forward-looking agenda to rebuild trust and expand economic partnerships. In a gesture of cooperation, Canada has moved to revoke the citizenship of Tahawwur Rana, an accused in the 2008 Mumbai terror attacks, who is currently in Indian custody.

Summing up, the visit of Canadian Prime Minister Mark Carney to India from February 27 to March 2, 2026 marks a significant, high-level effort to normalize and reset bilateral relations. The visit is designed to implement "calibrated and constructive steps" to restore stability. This visit serves as a cornerstone for restoring trust and building a "forward-looking" partnership. It highlights a shared vision for a balanced partnership grounded in mutual respect for each other's concerns, strong people-to-people ties and growing economic complementarities.

ALSO READ: Cabinet May Approve Critical Minerals Pacts With Germany, Canada

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