New Delhi: India and Canada have reset relations with a landmark nuclear energy deal following talks between Prime Minister Narendra Modi and Prime Minister Mark Carney in New Delhi. The meeting has marked a significant step in repairing ties that had deteriorated sharply over diplomatic tensions in recent years.
At the centre of the reset is a 10-year nuclear energy deal covering long-term uranium supply, alongside collaboration on small modular reactors and advanced nuclear technologies. Modi said that, the agreement in civil nuclear energy represents a major milestone, adding that both sides will deepen co-operation in technology and innovation.
Beyond nuclear energy, the two leaders have agreed to expand engagement in critical minerals, artificial intelligence, supercomputing, semiconductors, defence, space and education. Both governments have also committed to finalising a long-discussed comprehensive economic partnership, with Carney indicating a target to conclude the free trade agreement by the end of 2026. Modi has set a goal of reaching $50 billion (£39.5 billion) in bilateral trade.
Relations had plummeted after former Canadian Prime Minister Justin Trudeau alleged a potential link between India and the 2023 killing of Sikh separatist Hardeep Singh Nijjar in Canada. India rejected the allegation. Diplomatic expulsions and visa suspensions followed, pushing relations to a near standstill.
Since taking office, Carney has sought to stabilise ties, while Canada’s security agencies have maintained that threat assessments regarding foreign interference remain unchanged. Canadian Foreign Minister Anita Anand has emphasised the need for continued diplomatic dialogue to make progress.
Analysts have described the reset as pragmatic, reflecting shifting geopolitical dynamics and shared economic priorities. Both countries are seeking to diversify trade partnerships and reduce exposure to external pressures, including US tariffs. With expanded engagement across energy and technology, the new nuclear energy deal signals a cautious but meaningful rebuilding of India–Canada relations.
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