23

Nov

India–Canada: Renewed Trust, Renewed Momentum

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Prabhjot Singh

Toronto, Canada | Monday | 24 November 2025

After Years of Strain, a Fresh Chapter in Bilateral Cooperation Begins to Take Shape

Despite the turbulence and uncertainty that have marked India–Canada relations in recent years, a renewed flow of economic cooperation is once again visible. Following reciprocal visits by the two foreign ministers earlier in the year, the November meeting between the commerce ministers has given both countries a fresh opportunity to reset ties. The New Delhi talks between Canada’s Minister for International Trade, Maninder Sidhu, and India’s Minister for Commerce and Industry, Piyush Goyal, are being viewed not only as an important political signal but as a decisive step toward long-term strategic partnerships.

A joint statement issued after the meeting noted that bilateral trade in goods and services reached USD 23.66 billion in 2024. Goods trade alone rose to USD 8.98 billion, marking an impressive 10% increase over the previous year. At a time when the global economy continues to grapple with geopolitical friction, supply chain disruptions, and sluggish growth, this upward trend is itself significant.

A Sign of New Canadian Leadership

Maninder Sidhu, the first trade minister in the newly formed Mark Carney government, visited India from 11 to 14 November. Importantly, he is the second Indian-origin Canadian minister to arrive in New Delhi in recent months, following Defence Minister Anita Anand. These high-level visits are widely interpreted as early signs of “renewed trust” and a “return to pragmatism” in bilateral policy.

Article at a Glance
India–Canada relations, strained in recent years, are witnessing renewed momentum with fresh diplomatic and economic engagement. The November meeting between India’s Commerce Minister Piyush Goyal and Canada’s Trade Minister Maninder Sidhu marked a significant step in rebuilding trust.
Bilateral trade reached USD 23.66 billion in 2024, with goods trade rising 10%. Both nations highlighted expanding investment flows and identified critical minerals, clean energy, and aerospace as key areas for future cooperation. They agreed to deepen expert-level dialogues and strengthen supply chains disrupted by global crises. This revival follows a renewed political warmth under Canada’s new government led by Mark Carney.
Veteran business leader Hemant Shah views the moment as ideal for resuming FTA talks and emphasizes the crucial role of the Indian diaspora. As both countries look ahead, their natural economic complementarities and shared interests position them to build a stronger, future-oriented strategic partnership.

Both ministers acknowledged the steady rise in bilateral investment flows. Canadian institutional investors continue to deepen their presence in Indian infrastructure, real estate, financial services, and renewable energy. Indian companies, for their part, are expanding their footprint in Canada. Sidhu and Goyal agreed on the importance of maintaining an open, transparent, and predictable investment environment—an essential condition for expanding private-sector participation.

Critical Minerals, Clean Energy, Aerospace: Pillars of Future Cooperation

Among the sectors with the highest potential for collaboration are critical minerals, clean energy, and aerospace. India’s energy transition requires a stable supply of minerals such as lithium, nickel, and cobalt—resources Canada possesses in abundance. Ottawa’s reputation as a reliable supplier has further elevated expectations on both sides.

To strengthen long-term supply chain partnerships, the ministers agreed to initiate expert-level dialogues in these priority areas. Cooperation in aerospace and dual-use technologies is also set to expand. Canadian companies already have a meaningful presence in India’s aviation and aerospace ecosystem, and India’s rapidly growing aviation market is opening new avenues for joint ventures, technology transfers, and maintenance hubs.

Addressing Challenges to Global Supply Chains

The meeting also served as a platform to reflect on the lessons of recent global disruptions—ranging from the COVID-19 pandemic and the Ukraine conflict to instability in West Asia and threats to maritime transport. Both sides stressed the need to diversify and reinforce supply chains in sensitive sectors such as agriculture and food security. As the joint statement observed, reliable and diversified supply chains are essential for long-term global economic stability.

A Return of Warmth in Political Ties

This collaborative momentum comes after a period during which formal interactions between the two governments had noticeably cooled. A joint statement issued by the foreign ministers on 13 October—“Renewing Momentum Toward a Stronger Partnership”—had already signalled a shift in the political mood. The recent commerce ministers’ dialogue builds on that foundation and represents a concrete step toward repairing trust.

Both sides agreed to continue ministerial-level engagement with business communities early next year to ensure steady, practical progress on trade and investment initiatives.

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A Veteran’s Perspective: Five Decades of Engagement

Hemant M. Shah, a Winnipeg-based business leader and Chairman of the Trade Committee of the Canadian Hindu Chamber of Commerce, has been closely involved in strengthening India–Canada economic ties for 50 years. For him, the latest high-level exchanges are “not just diplomacy, but a reflection of changing times and a changing world.”

He believes the moment is ideal for both countries to resume negotiations on a Free Trade Agreement (FTA) without delay.

“The world is moving fast,” Shah says. “When you hold a partnership of this magnitude in your hands, standing still becomes risky. The Indo-Canadian community will be the soul of this renewed partnership. Our emotional and economic linkages can help shape the future of both countries.”

Shah notes that the recent silence and tension in bilateral ties had created unease not only in business circles but also within the Indian diaspora. Under Prime Minister Mark Carney’s leadership, he sees bilateral relations entering “a new, positive phase.”

His observations raise important questions: Did the Trudeau years widen the distance between India and Canada? Will the new government be able to narrow it? Shah’s assessment is unequivocal.

“The Carney government understands that India is now an emerging global power—an energetic and talented market of 1.4 billion people. Canada cannot rely on old markets anymore. Trump’s tariffs made that clear. The future lies ahead, not behind—and when we have a partner like India, that journey becomes even more meaningful.”

Natural Complementarity: A New Foundation for Growth

Shah emphasizes the natural synergy between the two economies:

•     Canada: rich in energy, minerals, environmental solutions, and agri-food capabilities

•     India: a vast and growing market, expanding manufacturing base, skilled workforce, and strong digital innovation ecosystem

“The strengths of both countries fit together like perfectly matched pieces of a puzzle,” he notes. “This partnership rests on six decades of friendship and shared values. Now is the right time to take it to the next level.”

He repeatedly underscores the central role of the Indian diaspora:

“Love for Canada and emotional bonds with India—this dual identity can help bring the two nations closer. The community must step forward and contribute to shaping Canada’s future in a way that strengthens this partnership.”

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The Road Ahead

The New Delhi meeting has made one message clear: India and Canada are not merely trying to overcome past differences—they are aiming to build a future-oriented, strategic partnership aligned with the needs of a changing global order.

From critical minerals and clean energy to aerospace, technology exchange, and diversified supply chains, new avenues of cooperation are opening up. Whether this “renewed trust” becomes a lasting pillar of bilateral relations will depend on political resolve, the agility of industry, and the leadership of the Indian diaspora.

But one thing is certain: this new beginning comes at a moment when the world needs reliable, balanced, and multi-polar economic partnerships more urgently than ever.  (Prabhjot Singh is a senior journalist with long years in The Tribune, Chandigarh. A big name in sports journalism, he is now  based in Taranto and spends his time between Canada and India).

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