A ‘delicate’ balance for Canada and a ‘win-win’ for Modi as Carney visits India

Prime Minister Mark Carney is in India for a pivotal trip aimed at repairing ties with the world’s largest democracy, as both countries seek to reduce their trade reliance on the US.

Carney began his visit in Mumbai, where he is meeting with business leaders. He will then travel to New Delhi for talks with Prime Minister Narendra Modi. The trip marks a significant turnaround in relations, which had collapsed when Canada accused India of carrying out an extrajudicial killing of a Canadian Sikh separatist on Canadian soil—a claim India strongly denied.

For Carney, the trip is focused on business, aligning with his goal of diversifying Canada’s trade partners. A key priority is advancing a comprehensive free trade agreement with India, which has been discussed intermittently for the past 15 years. Previous negotiations were derailed following public allegations by former Canadian Prime Minister Justin Trudeau in 2023. India has repeatedly denied involvement in the incident.

Carney’s visit does not include cultural stops like the Taj Mahal or travel to Punjab, signalling a focus solely on trade and economic cooperation. Discussions will cover energy, technology, artificial intelligence, and defence, as well as efforts to attract top talent to Canada. Both leaders are expected to address the impact of tariffs imposed by the Trump administration.

India stands to gain by securing new sources of energy, including a potential 10-year uranium supply agreement and increased imports of crude oil and gas from Canada. For Modi, the reset bolsters his domestic image while supporting India’s efforts to diversify energy imports and reduce reliance on the US.

Observers note that Canada’s diplomatic approach under Carney is more pragmatic, balancing trade objectives with national security concerns. The visit underscores the urgency of strengthening economic ties between the two countries amid shifting global trade dynamics.

Credit: BBC