India, Canada aim for trade pact by year-end, strike uranium deal

NEW DELHI: India and Canada will aim to conclude a free trade pact by the end of this year, Prime Minister Mark Carney said on Monday during his first visit to New Delhi, as the two countries seek to move past years of diplomatic friction to get economic ties back on track.

New Delhi and Ottawa hope to increase bilateral trade to $50 billion by 2030, Indian Prime Minister Narendra Modi said during a joint media appearance with Carney, from nearly $9 billion in 2024-25.

The two sides have agreed to the terms of reference on a comprehensive economic partnership, the Indian foreign ministry added.

They also agreed on a $2.6 billion uranium deal and will work on building small modular nuclear reactors and advanced reactors, both sides said. “In civil nuclear energy, we have concluded a landmark deal for the long-term supply of uranium,” Modi said.

Carney on route to Asia to promote Canada trade as US ties falter

The Indian government and Canada’s Cameco have signed a uranium supply agreement to support India’s nuclear ambitions and to work towards a clean, reliable base load power, Carney added.

Relations between India and Canada deteriorated sharply in 2023 after then Prime Minister Justin Trudeau alleged Indian involvement in the killing of a Canadian Sikh separatist, accusations New Delhi rejected as “absurd”.

The dispute deepened and led to expulsions of diplomats and freezing of trade negotiations.

Carney’s four day India visit is aimed at resetting ties, as both countries look to diversify trade away from the United States due to tariff announcements and deepen cooperation in areas such as clean energy, critical minerals and agricultural value chains.

India sealed a free-trade pact with the European Union in January, while it recently paused negotiations with the United States on a proposed deal, hoping to resume once there is greater clarity following the invalidation of President Donald Trump’s tariffs.