Canada's Prime Minister Carney Pursues Stronger India Ties to Diversify Trade Beyond the US
Canadian Prime Minister Mark Carney is actively rebuilding diplomatic and trade relations with India, aiming to diversify Canada’s economic partnerships across the Indo-Pacific and reduce dependence on the US market. Following deteriorated ties under his predecessor, Carney has initiated high-level visits and discussions to expand trade corridors and boost Canada's economy by tapping into India’s fast-growing market.
Since taking office in March 2025, Canadian Prime Minister Mark Carney has prioritized repairing and enhancing relations with India as part of a broader strategy to reduce Canada’s reliance on the United States, particularly in trade. Relations with India had soured in 2023 due to allegations by former Prime Minister Trudeau linking Indian agents to a killing in Canada, which India strongly denied, leading to diplomatic tensions including diplomat expulsions. Carney’s diplomatic reset began with a meeting with Indian Prime Minister Narendra Modi at the G7 Summit in June 2025, followed by reciprocal high-level visits involving Canada’s Foreign Minister Anita Anand and India’s External Affairs and Commerce Ministers. Both countries have indicated plans for continued diplomatic engagement, including an invitation for Carney to attend India’s AI Impact Summit. The Canadian government has launched a mission to double non-US exports in a decade, recognizing the Indo-Pacific’s economic potential, with India’s large technology-driven economy seen as a key partner for expanding trade and investment. Carney emphasizes this pivot as essential for strengthening Canada’s economy domestically while opening new international opportunities, signaling a significant strategic realignment in Canada’s foreign economic policy.
