Explained: This article explains the political background, key decisions, and possible outcomes related to Explained : India and Canada Set Sights on Free Trade Agreement Amid Diplomatic Reset and Its Impact and why it matters right now.
India and Canada are working towards finalizing a free trade agreement by the end of the year, as announced by Canadian Prime Minister Mark Carney during his maiden visit to New Delhi. The move aims to overcome previous diplomatic strains and rejuvenate economic relations between the two nations.
Indian Prime Minister Narendra Modi and Carney have underscored a mutual goal to elevate bilateral trade to $50 billion by 2030, a significant increase from the projected $9 billion in 2024-25. The two governments have reached consensus on a comprehensive economic partnership framework, according to the Indian foreign ministry.
In a landmark development, both countries have agreed on a $2.6 billion uranium supply contract along with efforts to construct small modular nuclear reactors. This energy deal marks a pivotal moment for India’s nuclear energy ambitions, while also seeking to establish a dependable base load power source, as articulated by Modi.