India has invited Canadian Prime Minister Mark Carney to visit New Delhi for talks with Prime Minister Narendra Modi, a move that could pave the way for a comprehensive economic and free trade partnership.
The Globe and Mail Canada has announced that Mark Carney has been invited to attend next year’s AI Action Summit in New Delhi. The 2025 summit, attended by heads of state, CEOs and AI leaders, was held in Paris.
India’s new high commissioner to Canada, Dinesh Kumar Patnaik, confirmed that Prime Minister Modi would make time for discussions on bilateral issues if Carney accepted the invitation.
“We hope he will accept it. If not, we will always find some time before March when we can do it,” he said. “I want him to go until May when it’s really warm.
Efforts to repair diplomatic relations
Dinesh Kumar Patnaik said the two countries were making “sincere efforts” to mend strained diplomatic ties and prioritized trade and investment, especially amid ongoing tariff tensions with the United States.
Free trade talks were suspended in the fall of 2023 after then-Prime Minister Justin Trudeau accused the Modi government of complicity in the killing of Sikh activist Hardeep Singh Nijjar in Surrey, Canada.
There were other allegations that linked agents of the Indian government to murder, extortion and other violent activities in Canada. The Indian government has denied the allegations.
Read also | Prime Minister Carney says the US and Canada will be “stronger together” during trade deal talks.
Diplomatic relations began to normalize after Carney and Modi met at the G7 summit in Alberta in June. High-level bilateral discussions have continued since the summer, focusing on national security and economic cooperation, according to The Globe and Mail Canada.
Potential for massive business growth
Patnaik said the comprehensive trade deal could take annual bilateral trade above $50 billion. In 2024, India and Canada will see a trade exchange of $23.6 billion – $12.7 billion more than in 2023.
Read also | Canadian Prime Minister Carney praises Trump for bringing ‘peace’ between India and Pakistan
Patnaik told the Globe and Mail that a formal trade deal could easily double that value. “If Canada wants to start negotiations, we’d be more than happy to expedite that, do it in an expeditious manner,” he said. “You’re looking at a minimum of $50 billion if we create the right environment for that.”
Key areas for economic cooperation
India is looking at several sectors for trade with Canada, including oil, gas, nuclear power, battery storage, fertilizers, processed food and agricultural products. The country is also open to cooperation in artificial intelligence and quantum computing.
“We want an early visit of the Prime Minister (Mark Carney) to India,” Patnaik said. “It’s a relationship we don’t want to go downhill from.”
Patnaik also specifically mentioned that Canadian canola could find a big market in India, which is the world’s largest consumer of cooking oil. This could help Canada diversify away from China after it recently banned Canadian canola. However, he noted that a marketing campaign would be necessary as Indians typically prefer cooking oils from sunflower, palm, canola and mustard.
India is also open to investing in Canadian energy and critical minerals, but requires Ottawa to guarantee clear investment rules, environmental standards and recognition of aboriginal title. Patnaik issued a subtle warning, noting that if Canada does not come, India will find other suppliers. “It’s not a market (India) where we can wait forever for Canada to come sell to us,” he told Globe and Mail Canada.
