Canadian Prime Minister Mark Carney announced that Canada and India are working at speed to finalize a Comprehensive Economic Partnership [1].
The move represents a strategic effort to revive economic momentum following severe diplomatic strains. The relationship between the two nations deteriorated after the 2023 killing of Sikh activist Hardeep Singh Nijjar [4].
Carney provided the update during a bilateral meeting on the sidelines of the G7 Summit in France in June 2024 [1, 2]. He said the negotiations are intended to unlock a massive new market for Canada. This push for a trade deal is designed to deepen ties in energy, artificial intelligence, and general trade [1, 4].
In a separate update delivered in Mumbai, Carney said Canada aims to sign the trade deal within the calendar year 2024 [5].
India's Minister of Commerce and Industry, Piyush Goyal, said the visit by Carney has reset ties after the 2023 killing of Hardeep Singh Nijjar [3].
Beyond the immediate bilateral benefits, Carney described the strategy as part of a broader economic vision. He said Canada is championing an alliance of mid-level economic powers that can operate beyond the protectionist trends in the U.S. [2].
“We are unlocking a massive new market as we negotiate the free‑trade deal with India.”
This trade push signals a pivot toward economic pragmatism over diplomatic friction. By diversifying its partnerships with mid-level powers like India, Canada is attempting to reduce its systemic economic reliance on the US while stabilizing a volatile relationship with New Delhi.
