After years of strained relations during Justin Trudeau’s tenure, India and Canada reset their ties with new partnerships in critical minerals and aerospace, even as relations with the U.S. remain strained over trade and market access.
India and Canada have formally revived their bilateral engagement by announcing long-term partnerships in critical minerals, clean energy, and aerospace cooperation, following the 7th Ministerial Dialogue on Trade and Investment (MDTI) held in New Delhi from 11–14 November 2025.
The dialogue, co-chaired by India’s Commerce and Industry Minister Piyush Goyal and Canada’s Minister of Export Promotion and International Trade Maninder Sidhu, marks the most substantive thaw in ties since the chill that defined relations during Justin Trudeau’s government.
The new administration led by Prime Minister Mark Carney has signalled a course correction, prioritising economic pragmatism, energy cooperation, and investment growth over political friction.
Reviving Economic and Strategic Cooperation
Both sides reaffirmed their commitment to strengthening trade, investment, and technology partnerships under the New Roadmap 2025. India and Canada identified critical minerals such as lithium, cobalt, and nickel as strategic resources for developing resilient and diversified supply chains to power India’s clean-energy and electric-mobility future.
They also pledged cooperation in green hydrogen and clean-energy research, while exploring aerospace and dual-use technology partnerships, leveraging Canada’s manufacturing experience and India’s fast-expanding aviation and defence industries.
Bilateral trade between the two nations reached US $23.66 billion in 2024, including US $8.98 billion in merchandise trade, a 10 percent rise over the previous year. Canadian pension and institutional investments in India remain strong, while Indian technology and pharmaceutical firms continue expanding in Canada, creating employment in both economies.
Minister Piyush Goyal emphasised the need for diversified, transparent, and dependable supply chains, particularly in critical and agricultural sectors, to secure long-term economic resilience.
A Cautious Reset, A Broader Message
This revival follows the meeting between Prime Minister Narendra Modi and Prime Minister Mark Carney at the G7 Summit in Kananaskis, Alberta, Canada, and the joint foreign ministers’ statement of October 2025, which identified trade and supply-chain resilience as the anchors of future engagement.
Both ministers expressed satisfaction with the progress in trade talks and reaffirmed the importance of sustained dialogue to maintain predictability in investment, signalling that New Delhi and Ottawa are ready to turn a page on years of political unease.
Meanwhile, India–U.S. Relations Face New Strains
While India’s ties with Canada are improving, its relationship with the United States has entered a more challenging phase.
Washington’s recent tariff hikes on Indian exports, coupled with pressure for wider U.S. market access in India, have led to friction in trade talks.
New Delhi, however, has remained firm, refusing to compromise India’s domestic market interests or the principles of Atmanirbhar Bharat. U.S. policymakers have often criticised India’s higher average tariff rates compared to the U.S.’s, overlooking that India’s tariffs serve both strategic and developmental needs.
India has also resisted U.S. efforts linking tariff relaxations to political conditions, such as limiting imports of Russian energy, reinforcing that strategic autonomy remains at the heart of Indian diplomacy.
Looking Ahead
The India–Canada partnership now aims to translate intent into action, particularly in critical mineral sourcing, aerospace collaboration, and clean-energy innovation.
This renewed engagement reflects India’s pragmatic approach, building balanced, diversified partnerships while protecting national interests.
Even as relations with Washington face turbulence, India’s widening global partnerships, from Russia to Canada, reaffirm its independent course in a multipolar world.
