New Delhi – Canadian Prime Minister Mark Carney is scheduled to meet with Indian Prime Minister Narendra Modi on Monday to formally launch negotiations for a comprehensive trade deal, marking a significant shift in relations between the two countries following a period of diplomatic strain.
The meeting comes after more than a year and a half of diplomatic stalemates, triggered by allegations of Indian government involvement in the murder of Hardeep Singh Nijjar, a Canadian citizen, in British Columbia in 2023. Former Prime Minister Justin Trudeau publicly accused unnamed Indian agents of involvement, a claim that significantly impacted the bilateral relationship. Recent statements from Ottawa indicate a willingness to move forward with trade discussions despite ongoing concerns regarding the investigation.
According to officials from both countries, the potential trade agreement is considered “history-making,” and aims to put years of frosty relations aside. The framework for the deal is expected to encompass goods, services, investment, agriculture, digital trade, mobility, and sustainable development. Leaders have expressed confidence that the agreement could more than double two-way trade to $70 billion by 2030, building on the momentum established through the 7th Ministerial Dialogue on Trade and Investment held in New Delhi on November 13, 2025.
This visit follows Prime Minister Carney’s trip to China in January, where he led a delegation to reset relations with Beijing, underscoring his government’s broader strategy to diversify trade partnerships in the face of uncertainty with the United States. Both Canada and India are currently navigating trade disputes with the U.S., contributing to the impetus for strengthening bilateral ties.
The return of high commissioners to both countries in August 2025 signaled a thaw in relations, and the two prime ministers previously agreed in November 2025, during the G20 Leaders’ Summit in Johannesburg, to enhance diplomatic staffing levels and strengthen people-to-people linkages. Discussions also included progress in a law enforcement dialogue between the two nations.
Foreign Affairs Minister Anita Anand has acknowledged the “security situation” with India as an “extreme concern and priority,” but the government is proceeding with trade negotiations. An official statement indicated that violence allegedly perpetrated by Indian agents in Canada has “not continued,” a key factor in facilitating the renewed dialogue.
Prime Minister Modi extended an invitation to Prime Minister Carney to visit India in early 2026, which Carney accepted. The meeting on Monday will formally initiate negotiations for the Comprehensive Economic Partnership Agreement (CEPA).
