India and Canada to finalize trade pact by years end

Indian Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney held talks in New Delhi, where they discussed plans for a free trade pact between the two countries.

The agreement aims to increase bilateral trade between India and Canada to $50 billion by 2030, up from nearly $9 billion in 2024-25. The deal is expected to be finalized by the end of this year.

During their meeting, Modi and Carney agreed on a number of key areas for cooperation, including nuclear energy, defense industries, and maritime domain awareness. A uranium supply agreement worth $2.6 billion was also signed, which will support India’s nuclear ambitions and contribute to the development of small modular nuclear reactors and advanced reactors.

Carney stated that the talks marked an expansion of a valued partnership between the two countries, with new ambition, focus, and foresight. He noted that there had been increased engagement between the Canadian and Indian governments in recent years.

The visit by Carney to India comes after a period of strained relations between the two countries, which began in 2023 following accusations made by Ottawa against the Modi government. However, both sides have expressed optimism about the prospects for improved ties.

India has also been seeking to diversify its trade relationships away from the United States, while Canada is looking to deepen cooperation with India in areas such as clean energy and critical minerals.

Source: Al Jazeera