India, Canada strengthen mineral and energy cooperation as trade tensions ease
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India and Canada have agreed to work more closely on critical mineral supply chains and clean energy.
The two nations announced the decision in a joint statement on Friday, marking a shift toward improving relations strained over recent years.
The statement also noted that both countries will deepen engagement to expand investment and trade opportunities in the aerospace sector.
Relations between New Delhi and Ottawa deteriorated sharply in 2023. At the time, then-Prime Minister Justin Trudeau alleged that India was involved in the killing of a Sikh separatist leader outside a temple in Surrey, British Columbia. India denied the claim and accused Canada of providing safe haven to separatist groups. As tensions rose, the two countries paused their trade negotiations.
The geopolitical environment has since shifted.
US President Donald Trump’s trade policies have pushed countries worldwide to rebalance their economic ties and diversify markets. Washington’s tariffs have disrupted global trade flows. India has faced particular pressure, with Trump imposing a 50% tariff that affected more than half of India’s exports to the US. The US also halted all trade discussions with Canada in late October after a Canadian advertisement criticised the tariff policy.
These broader disruptions have encouraged India and Canada to revisit their positions. After Mark Carney became Canada’s prime minister, both nations began taking steps to repair bilateral ties. They restored their envoys and started working toward an information-sharing framework to reduce cross-border crime.
Diplomatic engagement has picked up in recent weeks. India’s Foreign Minister Subrahmanyam Jaishankar met his Canadian counterpart, Anita Anand, in Ontario earlier this week. Canadian trade minister Maninder Sidhu is also visiting India to continue discussions.
According to the joint statement, the two countries aim to build secure supply chains in critical minerals and clean energy. They also plan to create more avenues for investment and trade in the aerospace sector.
Bilateral trade between India and Canada reached $23.66 billion in goods and services in 2024. Merchandise trade stood at nearly US$8.98 billion, representing a 10% increase from the previous year.