Canada is actively pursuing a stronger energy partnership with India as a strategic move to diversify its export markets and reduce its economic dependence on the United States. Canadian Energy Minister Tim Hodgson is currently in India to solidify energy ties, recognizing India's growing energy demands and its potential to become a key player in the global energy landscape.
Hodgson emphasized that Canada aims to be a reliable global energy supplier committed to fair trade. He also lauded India's trade deal with the European Union as a model for countering economic coercion, referencing a shift away from a rules-based, multilateral trading system towards a more mercantilist approach by major global powers. He stated that Canada will "never use our energy for torture".
Prime Minister Mark Carney's government is making a concerted effort to diversify Canada's export markets amidst escalating trade tensions with the U.S.. Hodgson noted that Canada previously directed 98% of its energy exports to a single country and that the country is committed to diversifying. Carney's foreign policy emphasizes building coalitions of "middle powers" to counter great power rivalry and economic coercion. A visit from Prime Minister Carney to India is expected in early March.
This renewed push signifies a major effort to diversify Canada's export markets at a time of escalating trade tensions with the US and reflects his government's shift toward pragmatic, economy-first diplomacy with major Asian partners.
The two countries are also aiming to expand trade in oil and gas. Canada will commit to shipping more crude oil, liquefied natural gas, and liquefied petroleum gas to India, while India will increase exports of refined petroleum products to Canada. Both governments see untapped potential and strategic value in strengthening their energy relationship. They will also facilitate greater reciprocal investment in each other's energy sectors and explore collaboration in areas including hydrogen, biofuels, battery storage, critical minerals, electricity systems, and the use of artificial intelligence in the energy industry.
Natural Resources Canada and India's Ministry of Petroleum and Natural Gas recognize the complementary nature of their energy sectors and the mutual value to be gained through sustained engagement on energy matters. Canada aims to become an energy superpower in clean and conventional energy, with export diversification as a priority. India, as a major global energy consumer, offers a natural and symbiotic partnership grounded in scale, stability, and long-term opportunity.
Minister Hodgson is in India to participate in India Energy Week 2026 in Goa, marking the first high-level participation of a Canadian Cabinet Minister at the event. On the sidelines of the event, Hodgson and Indian Petroleum and Natural Gas Minister Hardeep Singh Puri launched the renewed Canada-India Ministerial Energy Dialogue. This follows the direction provided by the Prime Ministers of India and Canada during their interaction on the sidelines of the G7 Summit in June 2025, where they underscored the importance of restarting senior ministerial and working-level engagements.
