Canadian Prime Minister Mark Carney is considering a visit to India for the Artificial Intelligence (AI) Action Summit in New Delhi, potentially paving the way for bilateral talks with Indian Prime Minister Narendra Modi. This visit could mark a significant step in strengthening relations between the two countries and fostering discussions on economic and trade partnerships.
Mending Fences and Prioritizing Trade
The potential visit signals a thaw in relations that were strained in recent years. Free-trade negotiations were paused in the fall of 2023 amidst allegations of Indian government involvement in the killing of Sikh activist Hardeep Singh Nijjar in Canada, which India has refuted. Despite these challenges, both nations are now making a "sincere effort" to repair diplomatic relations, prioritizing trade and investment.
Dinesh Kumar Patnaik, India's new High Commissioner to Canada, has been instrumental in emphasizing the mutual benefits of enhanced economic cooperation. He confirmed that if Carney accepts the invitation to the AI summit, Modi would ensure time for discussions on bilateral issues. Patnaik expressed hope that Carney would visit before May, before political and climate factors might complicate the engagement.
AI Summit and Bilateral Discussions
The AI Action Summit in New Delhi in February presents an opportunity for leaders, CEOs, and AI experts to convene. Carney's potential attendance underscores the importance of artificial intelligence as a sector of focus for his government. The summit would also provide a platform for Modi and Carney to hold bilateral discussions on a range of issues, including economic cooperation and the resumption of free-trade negotiations.
Economic Opportunities and Trade Growth
A comprehensive trade agreement between India and Canada could significantly boost bilateral trade, potentially exceeding $50 billion annually. In 2024, trade between the two countries reached $23.6 billion, a substantial increase from $12.7 billion in 2023. Patnaik believes that a formal trade agreement could easily double this value, creating a more favorable environment for economic exchange.
India is eyeing several sectors for trade with Canada, including oil, gas, nuclear power, battery storage, fertilizers, processed food, and agricultural products. Cooperation on AI and quantum computing is also of interest. Furthermore, Patnaik suggested that Canadian canola could find a market in India, potentially reducing Canada's reliance on China.
Addressing Security Concerns and Building Trust
High-level bilateral discussions have been ongoing since the summer, focusing on national security concerns to pave the way for expanded economic ties. These discussions aim to address areas of disagreement and foster greater trust between the two nations.
India and Canada have agreed on a "New Roadmap" for their relations, emphasizing mutual respect, shared democratic values, and commitment to sovereignty and territorial integrity. This roadmap includes measures to strengthen institutional capacity and deepen cooperation across economic, technological, and strategic domains. Recent steps include reinstating High Commissioners, meetings between National Security Advisors, and discussions between Foreign Ministers.
Pathways to a Stronger Partnership
The potential visit by Prime Minister Carney and the ongoing dialogues signify a commitment to rebuilding a strong and resilient Canada-India relationship. By addressing security concerns, prioritizing economic cooperation, and fostering open communication, both countries aim to unlock the full potential of their partnership. The AI summit and planned bilateral talks could serve as catalysts for a renewed era of collaboration and growth.
