Prime Minister Mark Carney meets with Indian Prime Minister Narendra Modi during the G20 summit in Johannesburg, South Africa, on Sunday, Nov. 23, 2025. The Canadian Press
Prime Minister Mark Carney and Indian Prime Minister Narendra Modi agreed to begin talks for a new Comprehensive Economic Partnership Agreement. Carney shared the news on Sunday, saying a full trade deal could push two-way trade above $70 billion. The two leaders met during the G20 summit in South Africa as both countries look to rebuild a strained relationship.
The Prime Minister’s Office confirmed that Carney accepted an invitation to visit India in early 2026, marking a new chapter after several years of tension.
Carney Calls India a Reliable Partner
Earlier on Sunday, Carney said he considers India a reliable trading partner. He noted that every major relationship includes challenges but added that strong systems exist to manage disputes. Carney stressed that a proper trade deal would allow both countries to expand trade more easily.
“We can be both a reliable trading partner, and there will be some sources of friction,” Carney said. He also pointed out that India remains one of the largest and fastest-growing economies in the world.
This was the second meeting between Carney and Modi in six months. Their previous one-on-one took place in June at the G7 summit in Alberta.
A Troubled History
The push to reset relations comes two years after former prime minister Justin Trudeau said there were “credible allegations” of Indian involvement in the killing of Canadian Sikh leader Hardeep Singh Nijjar in 2023.
Soon after, the RCMP accused Indian diplomats of involvement in serious criminal activity in Canada. That year, both countries expelled six diplomats from each other’s territory, and Canada paused trade talks.
Carney now says the time has come to rebuild a stable foundation for business, with clear rules and strong protections for both sides.
Trade Minister Sidhu Stays Cautious
International Trade Minister Maninder Sidhu says Canada needs ongoing dialogue with India. When asked whether he considers India a reliable partner, he did not give a direct answer. Instead, he highlighted the importance of steady communication and cooperation on law enforcement and economic issues.
Sidhu recently returned from a trade visit to India, where he focused on clean energy, agriculture, and critical minerals. He said Canada wants to “start afresh” rather than continue earlier trade negotiations.
India Wants Reliability Too
India’s new High Commissioner to Canada, Dinesh Patnaik, said last month that Canada is “not yet” a reliable energy supplier. He noted that India seeks steady partners who can deliver food, energy, and other goods without interruption.
Patnaik also said India wants Canada to succeed as a dependable partner and believes it can reach that point with time and commitment.
Diplomatic relations showed improvement in October when both countries agreed to allow expelled diplomats to return.
India now ranks as Canada’s seventh-largest trading partner. Two-way trade reached nearly $31 billion in 2024. India also remains Canada’s top source of newcomers, with more than 1.8 million Canadians of Indian origin and nearly 393,000 Indian students in the country last year.
