India-Canada Diplomatic Reset 2026: Carney’s Visit, Nijjar Crisis & CEPA Explained

On June 18, 2023, Hardeep Singh Nijjar — a Canadian citizen of Indian origin and a prominent figure in the Khalistani separatist movement — was shot dead outside a Sikh temple in Surrey, British Columbia. He was the head of Sikhs for Justice, designated a terrorist organisation by India.

Three months later, in September 2023, Canadian PM Justin Trudeau stood in Parliament and alleged that “agents of the Government of India” were involved in Nijjar’s killing on Canadian soil. India called the allegation “absurd and motivated” and rejected it entirely.

What followed was a cascade of diplomatic damage: India suspended visa services for Canadians, both countries expelled their respective High Commissioners, bilateral relations hit their lowest point in decades, and the long-running CEPA negotiations — already stalled for 16 years — were effectively frozen.

The reset began with a change of leadership. Justin Trudeau’s government collapsed under the weight of domestic unpopularity, rising cost-of-living concerns, and mounting internal party pressure. Mark Carney — a globally respected economist who had previously served as Governor of both the Bank of Canada (2008–2013) and the Bank of England (2013–2020) — became the Liberal Party leader and Prime Minister in early 2025.

Carney’s approach was immediately different. When he won the Liberal leadership, Modi called him within hours — a signal of India’s willingness to work with a new Canadian government. The first major breakthrough came at the G7 Summit in Kananaskis, Alberta (June 2025), where Carney had invited Modi. The two leaders agreed to formally relaunch CEPA negotiations. By September 2025, both countries had reappointed High Commissioners, restoring the formal diplomatic channel that had been severed during the crisis.

Just before Carney’s India visit, a senior Canadian official stated that “India is no longer a threat” to Canadian security — walking back the framing that had dominated the Trudeau-era narrative.

On February 27, 2026, Mark Carney landed in Mumbai — India’s financial capital — accompanied by his wife Diana Fox Carney and a high-level delegation of business leaders and government officials.

Days 1–2 (Feb 27–28): Mumbai Business Engagement. Carney’s Mumbai schedule was dense with economic substance — meetings with Indian and Canadian CEOs, innovators, financial experts, and representatives of major Canadian pension funds, which already have approximately $100 billion invested in Indian infrastructure, logistics, and real estate.

Day 3 (March 1): Travel to New Delhi for preparatory meetings ahead of the summit.

Day 4 (March 2): Modi-Carney Summit at Hyderabad House. The diplomatic centrepiece — formal bilateral talks with PM Modi at Hyderabad House, India’s traditional venue for high-level diplomatic summits. The agenda covered trade, energy, critical minerals, technology, agriculture, education, and innovation, alongside India-Canada CEOs Forum meetings.

1. CEPA — The 16-Year-Old Frozen Trade Deal. The Comprehensive Economic Partnership Agreement between India and Canada has been under negotiation since 2010 — never concluded due to disagreements over market access in dairy, automotive, and services sectors. Carney’s visit is expected to formally relaunch negotiations. India’s High Commissioner Sanjay Kumar Verma suggested a deal could be done “in less than 12 months if all goes well.” Canada’s desperation to diversify away from the US (amid Trump-era tariff pressure) is a significant new incentive.

2. Uranium Deal — Powering India’s Nuclear Future. Canada is one of the world’s largest uranium producers (Saskatchewan is the global hub). A uranium supply agreement worth approximately $2.8 billion CAD over 10 years is under active negotiation. India-Canada nuclear cooperation has a troubled history — Canada suspended nuclear ties after India’s 1974 test (“Smiling Buddha”) used a Canadian-supplied reactor. The 2008 India-US Civil Nuclear Agreement opened the door for resumed nuclear trade with India globally.

3. Critical Minerals and LNG. Canada possesses vast reserves of lithium, cobalt, nickel, and rare earth elements — essential for India’s EV, battery, and semiconductor supply chains. Both countries seek to reduce dependence on China-dominated supply chains. On LNG, Canada is looking to diversify exports away from the US; India — a rapidly growing energy consumer — is a natural long-term buyer.

4. AI and Technology. Given Canada’s strengths in AI research (Toronto-Waterloo corridor, Mila in Montreal) and India’s growing AI infrastructure ambitions (IndiaAI Mission, ₹10,372 crore), collaboration frameworks in AI and digital technologies are a natural fit.

The reset is real — but it is happening alongside, not because of, a resolution of the Nijjar controversy. Four suspects have been arrested by Canadian police for Nijjar’s murder. The trial is proceeding. Canada’s Foreign Minister Anita Anand stated that transnational repression concerns are “always at the forefront of our minds.”

Sikh community leaders in Canada remain under active threat. Just before Carney’s India visit, police warned Moninder Singh, head of the Sikh Federation of Canada, that his wife and children were also at risk. India, for its part, maintains it had nothing to do with Nijjar’s killing and has consistently rejected Canadian characterisations of Indian government involvement.

The two sides appear to have reached an unspoken agreement to park the controversy and focus on economic opportunities — a pragmatic approach driven by mutual self-interest rather than any resolution of the underlying dispute.

Carney’s India visit is part of a broader pattern of middle-power diplomacy in the Trump era. Canada, facing aggressive tariff pressure from the US, is pursuing a “strategic autonomy” strategy — Carney articulated this at Davos in January 2026, calling on middle powers to resist being subordinated to great powers. His Asia trip (India, then Australia and Japan) is a direct expression of this strategy.

For India, the Canada reset is one more data point in its “multi-alignment” posture — deep ties with the US, reset with Canada, ongoing engagement with Russia, and strengthened partnerships with middle powers across the Indo-Pacific. The reset also reflects India’s growing economic pull: when you are the world’s fastest-growing major economy, even countries that publicly accused your government of murder come calling.