Mark Carney's India visit: Why India, Canada are rebuilding trade ties amid Trump's tariff tantrums? Here's what we know 

Canadian Prime Minister Mark Carney is set to visit India in the coming weeks to expand trade and exports, marking a significant reset in bilateral ties after nearly two years of strained diplomatic relations. The visit is important as both countries try to expand trade and reduce their dependence on the US, which has imposed high tariffs—50% on Indian exports and 35% on Canadian goods. The trip will kickstart talks on a Comprehensive Economic Partnership Agreement (CEPA) to raise trade between India and Canada to $50 billion by 2030. 

It will also focus on areas like defense, technology, energy, and restoring diplomatic ties after tensions over the 2023 Nijjar incident.

The visit comes as Canada looks to reduce its dependence on the United States by doubling its non-US exports over the next decade, Indian High Commissioner to Canada Dinesh Patnaik said. The push for diversification gains urgency as both India and Canada face steep US tariffs — 50 per cent on Indian exports, including 25 per cent linked to India’s purchase of Russian oil, and 35 per cent on Canadian exports.

Speaking to CBC’s Power & Politics, Patnaik said Carney’s India visit is aimed at helping Canada broaden its trading partnerships amid rising trade pressures from Washington.

Carney echoed this strategy in a post on X on Monday, saying, “In a shifting global trade landscape, Canada’s new government is focused on what we can control. We're going to double our non-US exports over the next decade — to secure new opportunities for Canadian businesses, and create tens of thousands of new careers for Canadian workers.”

Patnaik said the visit is expected after India presents its Union Budget on February 1 and described the renewed engagement as evidence that “trust is back in the system.” He added that diplomats on both sides are working to “catch up” on initiatives that were delayed due to what he termed a “slight gap” in relations.

India–Canada ties cooled sharply in 2023 after New Delhi raised concerns over Canada’s perceived leniency towards Khalistani separatist elements and former prime minister Justin Trudeau alleged Indian agents were involved in the killing of NIA-designated terrorist Hardeep Singh Nijjar outside a gurdwara.

Patnaik stressed that India has consistently rejected the allegations, saying, “We have always said it’s preposterous, absurd. It’s something we don’t do,” adding that “there is no case against the Government of India.”

The high commissioner also signalled a shift in Ottawa’s approach under the new leadership, saying, “There’s a new prime minister who is changing the way Canada behaves.”

In November 2025, Carney accepted Prime Minister Narendra Modi’s invitation to visit India in early 2026 on the sidelines of the G20 Leaders’ Summit in South Africa. Following the return of high commissioners in August 2025, both leaders agreed to increase diplomatic staffing to address rising consular demand and strengthen people-to-people ties, while also supporting knowledge transfer initiatives.

Carney has also welcomed progress in law enforcement dialogue between the two countries.

India and Canada have further agreed to begin negotiations on a high-ambition Comprehensive Economic Partnership Agreement (CEPA) following a bilateral meeting between Modi and Carney. The proposed CEPA aims to boost bilateral trade to USD 50 billion by 2030.