Canadian PM Carney Heads to India Seeking Trade Deals, Stronger Ties

Canadian Prime Minister Mark Carney is making his first official trip to India this week, aiming to repair strained diplomatic relations and secure new trade agreements. The visit is part of Carney's broader strategy to reduce Canada's economic dependence on the United States by building partnerships with other middle-power nations.

Canadian Prime Minister Mark Carney touched down in Mumbai Friday for his inaugural official journey to India, seeking to repair diplomatic tensions with the world’s largest nation by population while pursuing fresh international partnerships.

During his Mumbai visit, Carney plans to engage with corporate executives and begin negotiations for a broad trade pact, which Canada’s foreign minister indicated to Reuters should wrap up by November. The prime minister will then head to New Delhi for discussions with Indian Prime Minister Narendra Modi.

This India trip represents part of Carney’s broader diplomatic push to strengthen relationships with China and Middle Eastern nations, as he works to decrease Canada’s economic reliance on the United States and establish what he describes as a new international trading framework centered on middle-power nations.

Diplomatic relations between the two countries deteriorated significantly following former Prime Minister Justin Trudeau’s bombshell accusations that India’s government played a role in killing a Canadian citizen who advocated for Sikh independence. Indian officials have consistently rejected these claims.

Breaking with tradition set by previous Canadian leaders including Trudeau, Carney will skip visiting India’s Punjab region, which serves as a major source of Indian immigration to Canada. Sikh independence advocates have campaigned for Punjab’s separation, making such a visit potentially offensive to Indian officials.

Political observers suggest this approach reflects a more business-focused foreign policy designed to reduce Canada’s dependence on the United States, particularly given President Donald Trump’s trade disputes and territorial ambitions.

“The Prime Minister has a laser-beam focus on attracting capital to Canada, not playing to the Indian diaspora back home,” said Goldy Hyder, president of the Business Council of Canada.

“This is a business trip aimed at growing the economy to give Canadians more economic sovereignty,” Hyder explained, describing the strategy as a major departure from Trudeau’s approach.

Recent developments have created optimism for Canadian-Indian trade relations, as the European Union and India finalized a significant trade agreement last month to reduce tariffs on most products. India’s top diplomatic representative in Canada revealed to Reuters in January that Carney will likely finalize a decade-long uranium supply contract worth C$2.8 billion ($2.05 billion), plus smaller deals covering petroleum, environmental issues, artificial intelligence, quantum technology, education and cultural exchange.

Trudeau faced ridicule during his 2018 Indian visit for donning overly ornate traditional clothing and received public criticism from Prime Minister Modi for permitting “anti-India activities,” referring to outspoken Sikh separatist groups based in Canada.

“Carney has a sense of gravitas and is very strategic,” observed Partha Mohanram, a management professor at the University of Toronto. “He’s not going to do a bhangra dance over there.”

However, Carney’s India strategy has faced pushback from certain Sikh organizations in Canada.

“The Carney government has failed to hold India accountable or to create any meaningful safeguards to ensure that Sikh Canadians are protected from foreign interference and transnational repression,” the World Sikh Organization of Canada declared Wednesday.

Canadian Foreign Minister Anita Anand confirmed to Reuters that high-level discussions between both nations have addressed concerns about criminal activities potentially connected to India. Anand mentioned new protocols to monitor illicit financial flows, cyber threats and surveillance targeting diaspora populations.

Anand emphasized that Carney’s international strategy responds to shifting global trade dynamics and that “no country will ever have a pass in terms of the domestic safety and security of this country.”

Following his India visit, Carney will travel to Australia for a parliamentary address and discussions on military cooperation, commerce and defense partnerships. On his return journey to Ottawa, he’ll meet with Japanese Prime Minister Sanae Takaichi to explore expanded trade in automotive, energy and strategic mineral sectors.

Jonathan Kalles, a former Trudeau administration advisor, explained that Carney’s agenda reflects the new international framework he presented at Davos, where he advocated for middle-power countries to pursue a “principled and pragmatic” approach to counter American dominance.

“When the world is nice and calm, you can try to change the world and talk about virtues,” Kalles noted. “But when you’re living in uncertain times, the Prime Minister’s job is to advance the country’s interests and Mark Carney knows very well his job is to diversify our trade and strengthen the economy.”