New Delhi [India], October 23 : India has invited Canadian Prime Minister Mark Carney to New Delhi for talks with Prime Minister Modi early next year, a move that could pave the way for a comprehensive economic and free-trade partnership, The Globe and Mail Canada reported.
Dinesh Kumar Patnaik, India's new High Commissioner to Canada, told The Globe and Mail that both countries are making a "sincere effort" to repair strained diplomatic relations and focus on trade and investment amid ongoing tariff tensions with the United States.
"Bilateral trade could exceed $50 billion annually if a far-reaching deal is reached, he said. "We want an early visit of the Prime Minister to India," Patnaik said. "It is a relationship we do not want to go downhill."
Free-trade negotiations were paused in fall 2023 after then-Prime Minister Justin Trudeau accused the Modi government of involvement in the killing of Sikh activist Hardeep Singh Nijjar in Surrey, B.C. Canada later expelled India's High Commissioner and five other diplomats after the RCMP said Indian government agents had been linked to homicides, extortion, and other violent activities in Canada.
India denied the allegations and responded with reciprocal expulsions. Diplomatic ties began normalising after Carney and PM Modi met at the Group of Seven summit in Alberta in June. Patnaik told The Globe and Mail that high-level bilateral discussions have continued since summer to address national-security concerns and allow both leaders to prioritise economic cooperation.
An invitation has been extended to Carney to attend the Artificial Intelligence Action Summit in New Delhi in February. This year's summit was held in Paris and included heads of state, CEOs, and AI leaders. Patnaik said PM Modi would make time for discussions on bilateral issues, including an economic and free-trade pact.
"We are hoping he accepts. If not, we will always find some time when we can do this before March," he said. "I want him to go before May when it really heats up."
Bilateral trade between India and Canada reached a record $23.6 billion in 2024, up $12.7 billion from 2023. Patnaik told The Globe and Mail that a formal trade agreement could easily double this value. "If Canada wants to start negotiations we would be more than happy to speed up things, to do it in a fast way," he said. "You are looking at minimum of $50-billion if we allow the proper environment for it."
India is interested in Canadian oil, gas, nuclear power, battery storage, fertilizers, processed food, and agricultural products. The country is also open to cooperation on AI and quantum computing. Patnaik said Canadian canola could find a market in India, the world's largest consumer of cooking oil, which could reduce Canada's dependence on China after its recent ban on Canadian canola.
However, he noted that a marketing campaign would be required as Indians typically prefer cooking oils from sunflowers, palm, rapeseed, and mustard. India is also open to investing in Canadian energy and critical minerals, but Ottawa needs to ensure clear investment rules, environmental standards, and recognition of aboriginal title.
"Frankly we would be happy to come to invest in Canada but you have to create the ecosystem for people to come in," he said, commending Carney for establishing a fast-track Major Projects Office in Calgary.
Patnaik added: "We are waiting for Canada to sell to us but if Canada doesn't come, we'll find other suppliers. It's not a [India] market where we can wait forever for Canada to come sell to us."
During a recent visit to New Delhi, Canadian Foreign Affairs Minister Anita Anand signed a joint declaration covering law enforcement and the rule of law, which also provides a framework to strengthen trade and economic ties, The Globe and Mail reported.
Patnaik said Indian police and national-security agencies are now exchanging information and seeking closer cooperation with the RCMP and Canadian Security Intelligence Service. He denied India's involvement in Nijjar's killing and criticised Canada for inaction against violent activities by some Canadian Sikhs advocating for a separate Khalistan state.
"Your evidence is enough but our evidence is not enough," he said. "We need to talk. We need to have a clear security dialogue."
He also described threats from Khalistani separatists outside his residence, including chanting for his death, displaying a target, and offering a $10,000 reward. "I had my daughter and granddaughter visiting me and they were scared," he added.