India is actively pursuing collaborations with Canada to secure access to critical minerals, essential for its rapidly growing economy and energy transition. This initiative involves high-level diplomatic engagement and aims to diversify India's supply chains.
Canadian Prime Minister Mark Carney is scheduled to visit India in March, marking the highest-level engagement since diplomatic tensions arose in 2023. This visit is expected to solidify agreements concerning uranium supply, energy, critical minerals, and artificial intelligence. Prior to Carney's visit, Canada's Energy Minister Tim Hodgson traveled to India for sectoral talks, signaling both countries' intent to reset relations and expand bilateral trade. Hodgson's visit included participation in India Energy Week in Goa, where he met with Indian officials to discuss enhanced shipments of crude oil and collaboration in other energy sectors.
During India Energy Week, Indian Oil Minister Hardeep Singh Puri told reporters that India is keen on investing in the extraction of critical minerals in Canada and will soon send a delegation to discuss potential joint ventures. Both sides have agreed to enhance bilateral energy trade, encompassing Canadian LNG, LPG, and crude oil exports to India, alongside India's supply of refined petroleum products to Canada. Puri also mentioned Canada's small modular reactors (SMRs) as another area of interest for India.
Canada is seeking to reduce its reliance on the United States amid tariff threats and sees India's growing economy as a significant opportunity for collaboration in energy, minerals, and technology. According to Minister Hodgson, India accounts for only 1% of Canada's critical mineral exports, which shows the scale of opportunity. Canada is committed to supplying critical minerals to India, aiding in India's energy transition. The two countries are also expected to facilitate greater reciprocal investment in the energy sector.
The discussions also aim to revive negotiations on the Comprehensive Economic Partnership Agreement (CEPA), targeting a bilateral trade volume of $50 billion by 2030. A potential 10-year agreement worth 2.8 billion Canadian dollars for uranium supply is under consideration as part of the broader CEPA negotiations slated to commence in March. Any uranium deal would require adherence to International Energy Agency safeguards. Canada began exporting LNG to Asia as of June 2025, and its LPG terminals have relatively short shipping routes to India.
The renewed engagement is a strategic move for both nations, with India seeking stable supplies of energy and minerals, and Canada aiming to expand its export markets.
