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(Bloomberg) — Canadian Prime Minister Mark Carney met Indian Prime Minister Narendra Modi in New Delhi on Monday to reset relations after years of strain, with both leaders looking to clinch deals to boost trade and supply chains.
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The two leaders shook hands as they kicked off their meeting at Hyderabad House, a colonial-era state guest house used for high-level diplomatic meetings.
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Both sides are expected to announce a deal expanding Canada’s uranium shipments to India, as well as finalize the terms of reference for a trade deal, underscoring efforts to diversify their trade partnership and curb their dependency on the US.
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The meeting comes against the backdrop of heightened tensions in the Middle East following U.S.-Israeli strikes on Iran that killed the supreme leader Ayatollah Ali Khamenei, and Iran’s retaliation.
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Carney’s four-day visit to India signals an effort by the two countries to reset a bilateral relationship that has been badly strained in recent years. Former Prime Minister Justin Trudeau accused India of orchestrating the killing of a Sikh activist and conducting a campaign of violence, intimidation and extortion against Canadian citizens. India denied the allegations.
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In the last year, the two sides have worked behind closed doors to increase cooperation and exchange information on security related issues. The two leaders are also boosting cooperation on trade and technology.
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Canada has previously said it expects a trade deal between the two countries to double two-way trade to C$70 billion by 2030.
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Carney kicked off his visit in Mumbai this weekend where he held meetings with leaders in business and education. On Monday, he’ll address the India-Canada CEO’s forum after meeting Modi.
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For India, the trip presents an opportunity to consolidate economic partnerships with a key Western partner. New Delhi is navigating the fallout of the widening conflict in the Middle East, home to several million of its citizens. Modi is separately navigating a domestic backlash over his trip to Israel last week, which opposition groups said gave tacit approval for Israel’s airstrikes on Iran.
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—With assistance from Shruti Srivastava.
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English (US)