Canada’s relationship with India is set to evolve

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Narendra Modi, India’s prime minister, right, shakes hands with Mark Carney, Canada’s prime minister, during a news conference at Hyderabad House in New Delhi, India, on March 2, 2026. Photo: BloombergBy Brahma Chellaney, The Globe and MailPrime Minister Mark Carney’s visit to India is intended to close one of the most acrimonious diplomatic chapters between two major democracies in recent memory and inaugurate a more pragmatic, interest-driven partnership for an age of geopolitical uncertainty. Rarely have Canada and India found themselves so publicly at odds as they did in 2023-24, when the relationship sank to its lowest point ever. Then-prime minister Justin Trudeau’s allegation of a potential link between the Indian government and the killing of a Sikh-Canadian on Canadian soil triggered a spiral of recriminations, expulsions, visa suspensions and nationalist outrage. The dispute also exposed a deeper structural fault line: Canada’s permissive approach toward Sikh separatist activism versus India’s zero-tolerance view of Khalistan militancy. For New Delhi, the issue has not been merely diaspora politics but national security, shaped by the memory of the deadly 1985 Air India bombing by Canada-based Sikh terrorists. For Ottawa, the challenge has been to balance civil liberties with public safety in a diverse democracy. Mr. Carney’s visit signals that both governments have decided the costs of continued estrangement are too high. The visit’s strategic logic is rooted in a shared reassessment of the global order. Both Canada and India are hedging against the volatility of great-power rivalry. Mr. Carney’s emerging “middle-power” doctrine emphasizes building networks of trusted relationships beyond Washington’s orbit. India, for its part, has long sought diversified partnerships to avoid overdependence on any single pole. In this sense, the visit is not just a bilateral reset but part of a broader pattern: a quiet consolidation among middle powers seeking resilience in a fragmenting world. Both Canada and India, though, are walking a tightrope. They want to diversify away from an unpredictable U.S. without triggering further retaliation from Washington. At the heart of the visit lies a concrete economic agenda. The most eye-catching initiative is a 10-year, US$2.8-billion uranium supply agreement, which could be signed during Mr. Carney’s visit. For India, Canadian fuel offers a pathway to reduce reliance on both Russian imports and coal. For Canada, it secures a long-term market at a moment when Western demand is uncertain. Canada, which sees more than 90 per cent of its energy exports go to the U.S., is seeking to become a major oil and liquefied natural gas supplier to India, the world’s fastest-growing major energy consumer, with demand expected to double by 2045. India is already the world’s third-largestenergy consumer. Alongside energy, the two sides are accelerating negotiations on a Comprehensive Economic Partnership Agreement (CEPA), with a target of doubling bilateral trade to $70-billion in four years. The scope extends well beyond tariffs: services trade, digital commerce, labour mobility, agriculture and critical minerals are all on the table. A CEPA would anchor a supply-chain corridor linking Canada’s resource base with India’s manufacturing and technological capacity. This economic agenda reflects a shared desire to “derisk” from China-centric supply chains without embracing full decoupling, and to hedge against shifting currents of U.S. policy. Yet the economic reset cannot stand without a parallel security understanding. Both governments recognize that another crisis over extremism or sovereignty could derail the entire project. In Canada, Bill C-9, the Combatting Hate Act, would, if passed, criminalize the public display of terrorist symbols. It could signal to New Delhi that Canada is taking more seriously the issue of Sikh militancy. At the same time, both countries are expected to revive and upgrade their Joint Working Group on Counter-Terrorism, shifting toward real-time intelligence sharing and more streamlined extradition processes. India, for its part, is reaffirming respect for Canadian sovereignty after the controversies of 2023-24. The aim is to create institutional “guardrails”: mechanisms that allow co-operation to continue even when sensitive issues arise. Mr. Carney’s challenge, however, is as much domestic as diplomatic. Bill C-9 faces strong resistance from civil-liberties advocates, and parliamentary delays have already stalled its progress. Mr. Carney thus faces a delicate balancing act – demonstrating to India that Ottawa will act against extremist activity, while convincing Canadians he will not dilute constitutional freedoms or bow to external pressure. More fundamentally, Mr. Carney’s India visit marks a transition from an emotionally charged relationship to a transactional one. The bitterness of the Trudeau era is being set aside in favour of a sober recognition of mutual interests. If the uranium and hydrocarbon deals advance and CEPA negotiations stay on track, February, 2026, may be remembered as the moment Canada-India ties matured into a modern strategic partnership. For two pluralistic democracies navigating an uncertain century, this may prove to be the most sustainable foundation of all.Brahma Chellaney is a geostrategist and the author of nine books, including the award-winning Water: Asia’s New Battleground.