New Delhi — Economic ties between India and Canada could be entering a stronger phase as both countries seek to deepen cooperation in energy, critical minerals, clean technology, science, space and trade, according to an article by former Indian High Commissioner to Canada Sanjay Kumar Verma.
Verma wrote that the basic elements of a strong economic relationship have long existed, but political and institutional momentum has often been lacking. He said recent developments suggest that may now be changing.
The Joint Leaders’ Statement issued in March 2026 gave the renewed bilateral relationship a stronger economic focus, identifying energy, critical minerals, clean technologies, science and technology, space, resilient supply chains and talent mobility as priority areas.
The statement also placed the proposed Comprehensive Economic Partnership Agreement, or CEPA, back at the center of bilateral economic engagement.
With both governments aiming to conclude the agreement by the end of 2026, Verma said the key question is how broad and effective the pact will be in reshaping commercial ties.
Energy is expected to be a major area of cooperation. Canada has the potential to become a larger supplier of LNG, LPG, crude oil, uranium and other energy products, while India remains one of the world’s fastest-growing energy markets.
The two countries have established a Strategic Energy Partnership covering conventional energy, civil nuclear cooperation, clean energy and critical minerals.
A long-term uranium supply agreement worth CAD 2.6 billion, or about $1.88 billion, between Cameco and India’s Department of Atomic Energy has provided a concrete foundation for that cooperation, while the two sides are also working toward a long-term LPG supply arrangement.
Critical minerals are another potential growth area. Canada has significant mineral resources and technical expertise, while India is seeking secure supplies for batteries, clean technologies, advanced manufacturing and other industries.
A bilateral memorandum on critical minerals could support cooperation in exploration, processing, investment, technology and supply chains, going beyond traditional resource trade.
Clean energy also offers opportunities for closer collaboration. Canada is seeking to expand renewable power generation and storage, while India has developed significant capabilities in solar deployment, energy storage and large-scale renewable projects.
The two countries have agreed to cooperate in solar, wind, bioenergy, small hydro and storage technologies.
Technology could become an even broader area of partnership. Canada has strengths in artificial intelligence, advanced research, quantum technologies and aerospace, while India has a large digital economy, a substantial technology workforce and experience deploying digital platforms at scale.
The renewed bilateral science and technology framework could help convert those strengths into joint projects. Space cooperation is another area with an established foundation through decades of engagement between the Indian Space Research Organisation and the Canadian Space Agency.
As CEPA negotiations progress, India is expected to seek better access for pharmaceuticals, engineering goods, machinery, IT and professional services.
Canada, meanwhile, is expected to focus on agriculture and agri-food, energy, minerals, wood products and other resource-intensive sectors.
Verma noted that negotiations are likely to involve difficult domestic sensitivities on both sides, but said the renewed political and economic engagement creates an opportunity to build a more substantial bilateral commercial relationship. (Source: IANS)
