India and Canada Restore Relations with ‘Landmark’ Nuclear Energy Agreement

Reuters

Indian Prime Minister Narendra Modi and his Canadian counterpart Mark Carney.

India and Canada have unveiled a wide range of agreements — including a 10-year nuclear energy partnership — following talks between their prime ministers in Delhi aimed at restoring relations that had deteriorated sharply amid diplomatic tensions.

Indian Prime Minister Narendra Modi and his Canadian counterpart Mark Carney also reached understandings covering technology, critical minerals, space cooperation, defence and education.

Carney said the two sides had agreed to finalise a long-negotiated free trade agreement by the end of 2026, as both countries seek to lessen their exposure to punitive US trade tariffs.

Under Carney’s leadership, Ottawa and Delhi have been working to mend ties strained after his predecessor, Justin Trudeau, alleged that India was linked to the 2023 killing of Sikh separatist Hardeep Singh Nijjar on Canadian soil.

India strongly denied the accusation.

Bilateral trade and diplomatic engagement had nearly ground to a halt, with both nations expelling diplomats and suspending visa services. Canada is home to a large Indian diaspora.

However, since Carney assumed office last year, relations have been cautiously rebuilt — aided by his government’s statement that it does not believe India is currently connected to violent crimes or threats within Canada.

During the Delhi talks, both Carney and Modi emphasised the long-standing relationship between India and Canada, as well as their shared objectives and deep people-to-people links.

"In civil nuclear energy, we have reached a landmark deal for long-term uranium supply. We will also work together on small modular reactors and advanced reactors," Modi told reporters after their meeting at Hyderabad House in Delhi.

He described the two countries as "natural partners in technology and innovation" and said they would enhance co-operation in AI, supercomputing and semiconductors, as well as jointly host a renewable energy summit.

Carney said Canada was well positioned to contribute to energy-hungry India's nuclear fuel needs and added that the two countries were launching a strategic energy partnership.

He hailed the progress made in rebuilding relations.

"There has been more engagement between the Canadian and Indian governments in the last year than there has been in more than two decades combined," he said.

On trade, Modi said: "Our target is to reach $50bn in bilateral trade. This is why we have decided to finalise a comprehensive economic partnership soon."

Carney said he wanted to reach a deal on the "ambitious agreement" by the end of the year. It's been discussed on-and-off for the past 15 years so concluding it would be a significant achievement.

Carney's four-day trip began with a visit to the financial capital, Mumbai, where he met business leaders and ministers on 28 February with a view to boost trade and investment in India.

After concluding his trip in Delhi, Carney is set to travel to Australia and then Japan as part of his strategy to diversify Canada's trade and invite new investments.

Source: BBC



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