India-Canada Forge New Energy and Trade Partnership

India and Canada have announced a significant warming of bilateral relations, marked by several new agreements following a meeting in New Delhi between Prime Minister Mark Carney of Canada and Prime Minister Narendra Modi of India. These agreements cover critical minerals, a long-term uranium supply valued at 2.6 billion Canadian dollars, renewable energy promotion, and technology cooperation. This represents an expansion of the partnership with renewed ambition, reversing a prior deterioration in relations that began in 2023 over allegations concerning the assassination of a Sikh separatist in Vancouver.

A key focus is on energy, with India aiming to increase its nuclear capacity from 8 to 100 gigawatts by 2047. The uranium supply agreement and planned collaboration on small modular and advanced reactors support this goal. Both countries are also intensifying cooperation on critical minerals and rare earths processing, aiming to diversify supply chains currently dominated by China.

Furthermore, the leaders committed to finalizing a comprehensive economic partnership agreement with a target of reaching 50 billion dollars in bilateral trade, which is expected to create new investment and job opportunities in both nations. A new defense partnership was also announced. For Canada, deepening ties with India aligns with a strategic priority to reduce its heavy economic reliance on the United States. Prime Minister Carney expressed the intention to conclude an ambitious trade agreement by year’s end to reduce barriers and build confidence.

SOURCE: FRANCE 24