India–Canada

The high-level engagements between India and Canada in January 2026 marked a significant reset in bilateral relations. The renewed partnership is structured around four strategic pillars: nuclear energy, critical minerals, clean energy, and allied sectors, aiming to align Canada’s resource strengths with India’s industrial and agricultural scale.

1. Energy Cooperation

On the sidelines of India Energy Week (IEW) 2026), both countries re-launched the Canada–India Ministerial Energy Dialogue (CIMED). The dialogue focuses on diversifying energy supplies, including LNG, LPG, and crude oil, thereby strengthening India’s energy security.

Both nations agreed to collaborate in emerging sectors such as hydrogen production, carbon capture and storage (CCUS), and sustainable aviation fuels (SAF). In addition, the proposed visit of the Canadian Prime Minister in March 2026 is expected to finalise a 10-year uranium supply agreement worth 2.8 billion Canadian dollars, reinforcing cooperation in nuclear energy.

2. Food Security and Fertiliser Supply

Canada currently supplies nearly 25% of India’s Muriate of Potash (MOP) requirements and has reaffirmed its commitment as a reliable fertiliser partner.

In a significant move, Canada pledged to match investments made by Indian partners in its natural resources sector, thereby encouraging long-term strategic investments and ensuring stable agricultural supply chains.

3. Critical Minerals and Clean Mobility

Both countries agreed to establish coordination frameworks for Advanced Chemistry Cell (ACC) manufacturing and next-generation battery research and development.

Canada reiterated its readiness to support India’s needs for Lithium, Cobalt, Graphite, and Rare Earth Elements (REEs), which are essential for India’s electric vehicle mission (PM E-DRIVE) and clean energy transition.

Further, the first Canada–India Critical Minerals Annual Dialogue is scheduled for March 2026 in Toronto to build transparent and resilient supply chains.

4. Trade and Economic Cooperation

Both nations committed to accelerating negotiations for the Comprehensive Economic Partnership Agreement (CEPA), with the aim of doubling bilateral trade to USD 50 billion by 2030. This reflects a shared intent to deepen economic integration.

Key Highlights of India–Canada Bilateral Relations

1. Historical Foundations

India and Canada share a long-standing relationship rooted in shared democratic values and multicultural societies. Indian migration to Canada dates back to the freedom struggle, with institutions like the Swadesh Sevak Home in Vancouver mobilising support against British rule.

Diplomatic relations were established in 1947, and India’s Constitution drew inspiration from the Canadian federal model, particularly the concept of a strong Centre with residuary powers. Bilateral ties were elevated to a Strategic Partnership in 2015.

2. Strategic Importance

India is a key partner in Canada’s Indo-Pacific Strategy, reflecting growing geopolitical and economic convergence. Both nations are increasingly cooperating to ensure supply chain resilience and energy security in an uncertain global environment.

3. Trade Relations

In 2024, India was Canada’s 7th largest trading partner, with two-way trade amounting to USD 30.9 billion. India maintains a surplus in goods trade.

Major Canadian exports to India include vegetables, mineral fuels and oils, wood pulp, fertilisers, paper and paperboard.
India’s exports to Canada primarily consist of pharmaceuticals, machinery, electronics, precious stones and metals, and iron and steel products.

4. Diaspora and People-to-People Ties

Canada is home to over 1.8 million people of Indian origin, making it one of the largest Indian diasporas globally. This diaspora acts as a “Living Bridge” strengthening economic, cultural, and educational ties.

5. Science, Technology, and Space Cooperation

Technological cooperation is anchored in the Canada–India Science and Technology Cooperation Agreement (2005) and supported by the Joint Science and Technology Coordination Committee (JSTCC).

ISRO and the Canadian Space Agency (CSA) have signed MoUs, and ISRO’s commercial arm, ANTRIX, has launched several Canadian nanosatellites.

6. Security Cooperation

Security ties are anchored in the Joint Working Group on Counter Terrorism (1997) and the Framework for Cooperation on Countering Terrorism (2018). Legal cooperation is strengthened through the Extradition Treaty (1987) and the Mutual Legal Assistance Treaty (1994).

Major Challenges in India–Canada Relations

1. The Khalistan Issue

India has raised concerns regarding the alleged gangster–terrorist nexus operating from Canadian soil, where extremist elements are accused of collaborating with organised crime networks.

New Delhi views Canada’s approach as overly permissive and believes that extremist elements exploit asylum loopholes, posing a threat to India’s internal security, particularly in Punjab. Both countries differ on the distinction between legitimate political activism and violent extremism.

2. Trade and Economic Barriers

CEPA negotiations face hurdles due to high tariffs, non-tariff barriers, and differing regulatory standards. India’s sanitary and phytosanitary (SPS) norms and Canada’s stringent regulations on electronics and chemicals create friction.

3. Digital Trade and Data Governance

Divergent approaches to data localisation, privacy laws, and digital governance present challenges for Canadian technology and AI firms operating in India.

4. Geopolitical Divergence

While both nations support the Indo-Pacific vision, Canada prioritises human rights and de-risking strategies, whereas India focuses on maritime security and counterbalancing China. These differences occasionally create strategic misalignment.

Measures to Strengthen India–Canada Relations

To stabilise and deepen ties, both countries can adopt the following measures:

• Establish a Bilateral Security and Sovereignty Dialogue at the NSA level to address extremism and intelligence sharing.

• Institute a 2+2 Dialogue Mechanism to enhance strategic coordination.

• Revitalise the Joint Working Group on Counter-Terrorism and effectively utilise the Extradition and MLAT frameworks.

• Promote mutual recognition of professional qualifications to transform student migration into a skilled talent partnership.

• Encourage cooperation in Digital Public Infrastructure (DPI) and financial technologies.

• Expand collaboration in GIFT City, cold-chain technology, and sustainable mining.

• Strengthen diaspora engagement and cultural diplomacy to reinforce the “Living Bridge.”

Conclusion

The January 2026 reset signals a pragmatic and forward-looking recalibration of India–Canada relations. While political and security challenges remain, especially concerning extremism and trade barriers, expanding cooperation in energy, critical minerals, clean mobility, trade, and human capital provides a strong foundation for a stable and mutually beneficial partnership.