India, Canada Set Roadmap to Restore Bilateral Relations After Diplomatic Strain

India and Canada will resume talks on energy cooperation during India Energy Week in Goa in January 2026. Energy dialogue between the two nations began in September 2016 and was further expanded during the visit of former Prime Minister Justin Trudeau to India in 2018. However, this dialogue was also affected by the tensions in bilateral relations.

Amid ongoing tensions with the United States, Canada is seeking buyers for its vast crude oil and gas reserves, and India is unlikely to be a better market for it.

Sources have indicated that renewed discussions are also underway between the two countries in the field of nuclear energy. However, under the Nuclear Cooperation Agreement (NCA), signed in June 2010 and effective from September 2013, a Joint Committee for Cooperation in Peaceful Nuclear Energy Uses was established. During Prime Minister Modi's visit to Canada in April 2015, a uranium supply agreement for 2015-2020 was signed between India's Department of Atomic Energy and Canada's Cameco Corporation.

According to sources, the two sides are now close to finalizing a new 10-year contract, which will strengthen India's long-term nuclear fuel security. Technology, rare earths, and space are three sectors where new possibilities for cooperation between India and Canada are being explored.

This time, the plan is to advance the talks with a fixed timeframe and phased targets to address the stagnation in trade and investment flows. Previous talks between the two countries on this issue were stalled after 2023.

In 2023, then-Prime Minister Justin Trudeau alleged that the Indian government was conspiring to assassinate its citizens. This allegation was made in the context of the killing of pro-Khalistan terrorist Hardeep Singh Nijjar. India has dismissed the allegation as baseless and politically motivated. Carney assumed office in March 2025 and has since been working tirelessly to restore relations.