24 Feb 2026·Source: The Indian Express

4 min

International RelationsNEWS

Michael Carney to meet PM Modi to discuss India relations

Michael Carney's visit aims to elevate India-Canada relations with focus on partnerships.

Canadian Prime Minister Mark Carney will meet Indian Prime Minister Narendra Modi in New Delhi on March 2, 2026, marking his first bilateral visit to India since assuming office. This visit aims to reset and elevate the Canada-India relationship, which faced diplomatic challenges following allegations in 2023 regarding the killing of Hardeep Singh Nijjar. Carney's visit is part of a three-nation tour that includes Australia and Japan, running from February 26 to March 7.

Carney will also visit Mumbai during his stay in India. Discussions with Modi will focus on ambitious new partnerships in trade, energy, technology, artificial intelligence (AI), talent and culture, and defence. Carney also intends to meet with business leaders to explore investment opportunities in Canada and foster partnerships between Canadian and Indian businesses. The goal is to more than double two-way trade to USD 70 billion by 2030, building on the $30.8 billion in trade recorded in 2024.

India is currently Canada’s seventh-largest goods and services trading partner. Both countries formally agreed to launch negotiations for a Comprehensive Economic Partnership Agreement (CEPA) at the G20 leaders’ summit last year. Carney's visit is viewed as an opportunity to finalize this agreement, potentially within a year.

This visit is crucial for India as it seeks to strengthen economic ties and diversify its partnerships in an uncertain global environment. The discussions on trade, energy, and technology are particularly relevant for India's economic growth and technological advancement. This news is relevant for UPSC exams, particularly in the International Relations section of GS Paper 2 and the Economy section of GS Paper 3.

Key Facts

Michael Carney is on a three-nation tour.

Carney will meet PM Narendra Modi on March 2.

The visit aims to strengthen relations between Canada and India.

Discussions will focus on economic partnerships, innovation, and defense.

UPSC Exam Angles

GS Paper 2 (International Relations): Bilateral agreements and their impact on India's foreign policy.

GS Paper 3 (Economy): Trade agreements, investment models, and technology cooperation.

Potential questions on the CEPA, trade diversification strategies, and India-Canada relations.

In Simple Words

A former big boss from a bank in England, Michael Carney, is visiting India to meet Prime Minister Modi. They want to make the relationship between Canada and India stronger. They'll talk about doing business together, new ideas, and keeping each other safe.

India Angle

This matters to India because stronger relationships with countries like Canada can bring more jobs and investments. It can also lead to better technology and defense cooperation, which helps the country grow and stay secure.

For Instance

Think of it like two neighborhood shopkeepers deciding to help each other out. They might share customers or buy goods together to get better prices. This helps both of their businesses.

It affects everyone because stronger international relationships can lead to more opportunities and a more secure future for India.

Stronger friendships between countries mean better opportunities for everyone.

Michael Carney, former Governor of the Bank of England, is on a three-nation tour and will meet Prime Minister Narendra Modi on March 2. The visit aims to strengthen relations between Canada and India, focusing on economic partnerships, innovation, and defense. Discussions will likely cover trade, investment, and strategic cooperation. Carney's visit underscores the importance of the India-Canada relationship and the potential for enhanced collaboration across various sectors.

Expert Analysis

Prime Minister Mark Carney's visit to India signifies a crucial step in resetting and strengthening bilateral relations. Several key concepts underpin the significance and potential outcomes of this visit.

The Comprehensive Economic Partnership Agreement (CEPA) is central to the discussions. Launched in 2010, negotiations for a CEPA between Canada and India aim to reduce trade barriers and increase economic cooperation. The goal, reaffirmed at the G20 summit, is to more than double two-way trade to USD 70 billion by 2030 from the $30.8 billion recorded in 2024. Carney's visit is expected to provide the impetus needed to finalize this agreement, potentially within a year, as both countries seek to diversify their trade relationships.

Another key area of focus is trade diversification. In an era marked by global economic uncertainty and disruptions, particularly stemming from tariff wars, Canada is actively seeking to diversify its trade partners. Carney's three-nation tour, including India, Australia, and Japan, underscores this strategy. By strengthening ties with these Indo-Pacific partners, Canada aims to build a more resilient and independent economy, reducing its reliance on any single trading partner.

Artificial Intelligence (AI) and technology cooperation form another critical pillar of the discussions. As India emerges as a global technology powerhouse, collaboration in AI and other advanced technologies offers significant opportunities for both countries. This includes talent mobility, research and development partnerships, and the deployment of AI solutions across various sectors. The focus on AI aligns with both countries' strategic priorities and their recognition of the transformative potential of these technologies.

For UPSC aspirants, understanding these concepts is crucial for both the Prelims and Mains exams. Questions may focus on the objectives and potential impacts of the CEPA, the strategic importance of trade diversification, and the scope for India-Canada cooperation in AI and technology. Familiarity with these areas will enable candidates to analyze the broader implications of this bilateral engagement.

Visual Insights

India-Canada Relations: Key Locations

Highlights key locations relevant to India-Canada relations, including Delhi (meeting location) and Ottawa (Canadian capital).

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📍Delhi📍Ottawa

More Information

Background

The relationship between Canada and India has seen periods of both cooperation and tension. Efforts to establish a Comprehensive Economic Partnership Agreement (CEPA) began in 2010, aiming to boost trade and investment between the two countries. However, negotiations faced obstacles, particularly during times of diplomatic strain. In September 2023, relations significantly deteriorated following allegations made by the Canadian government regarding the involvement of Indian government agents in the killing of Hardeep Singh Nijjar. This led to diplomatic expulsions and visa restrictions, creating a challenging environment for bilateral engagement. The invitation extended to Prime Minister Modi to attend the G7 summit in Kananaskis in June 2025 marked an initial step towards resetting relations. Despite these challenges, both countries recognize the importance of maintaining economic and strategic ties. The ongoing efforts to finalize the CEPA and enhance cooperation in areas such as technology and energy reflect a commitment to overcoming past difficulties and building a stronger, more resilient partnership. The current visit by Prime Minister Carney is a testament to this commitment.

Latest Developments

In recent years, Canada has been actively pursuing a strategy of trade diversification, particularly in the Indo-Pacific region. This is driven by a desire to reduce reliance on the U.S. market and build stronger economic partnerships with key Asian economies. The focus on sectors like clean energy, technology, and critical minerals reflects Canada's strengths and priorities. India, on the other hand, has been seeking to enhance its economic and strategic partnerships with countries that share its values and interests. The emphasis on technology and AI cooperation aligns with India's ambition to become a global technology leader. The negotiations for the Comprehensive Economic Partnership Agreement (CEPA) are a key element of this strategy. Looking ahead, both countries are expected to continue their efforts to deepen bilateral cooperation across various sectors. The successful conclusion of the CEPA would be a significant milestone, paving the way for increased trade and investment flows. Further collaboration in areas like defence and security is also likely, given the shared interests in regional stability and maritime security.

Frequently Asked Questions

1. What's the most likely way UPSC Prelims would test this news about Michael Carney's visit?

UPSC might frame a question around the Comprehensive Economic Partnership Agreement (CEPA) negotiations between India and Canada. They could present a statement like: 'The CEPA between India and Canada was successfully concluded in 2015,' which is incorrect. Knowing the history of strained relations and stalled negotiations is crucial.

Exam Tip

Remember the CEPA is still under negotiation. UPSC often tests on agreements that are 'under consideration' or 'stalled' to see if you're up-to-date.

2. Why is Canada focusing on trade diversification in the Indo-Pacific region now?

Canada is actively pursuing trade diversification in the Indo-Pacific region to reduce its reliance on the U.S. market. Building stronger economic partnerships with key Asian economies is a strategic move to ensure economic stability and growth.

3. How significant is Michael Carney's visit in resetting India-Canada relations, considering the diplomatic challenges in 2023?

Michael Carney's visit is highly significant as it marks the first high-level bilateral engagement since the tensions in 2023. It signals a willingness from both sides to move past the recent difficulties and explore new avenues for cooperation, particularly in trade, technology, and defense.

4. What specific areas of partnership should India focus on during discussions with Canada, and why?

India should prioritize partnerships in technology, artificial intelligence (AI), and critical minerals. These sectors align with India's growing economy and strategic needs. Collaboration in these areas can provide India with access to advanced technologies and resources, fostering innovation and economic growth.

5. Considering the history of strained relations, what are the potential obstacles to strengthening India-Canada ties, and how can they be addressed?

Potential obstacles include differing perspectives on geopolitical issues and concerns related to domestic political considerations in both countries. These can be addressed through open and transparent dialogue, focusing on shared interests and mutual benefits. Building trust and managing expectations are crucial for overcoming these challenges.

6. How does this visit relate to India's broader strategy of engaging with countries in the Indo-Pacific region?

This visit aligns with India's strategy to strengthen ties with key partners in the Indo-Pacific region. By enhancing economic and strategic cooperation with countries like Canada, India aims to promote regional stability, diversify its partnerships, and address shared challenges such as climate change and security.

Practice Questions (MCQs)

1. Consider the following statements regarding the Comprehensive Economic Partnership Agreement (CEPA) between India and Canada: 1. Negotiations for CEPA were formally launched in 2010. 2. The goal is to double two-way trade to USD 70 billion by 2030. 3. Canada was India's fifth-largest goods and services trading partner in 2024. Which of the statements given above is/are correct?

A.1 and 2 only
B.2 and 3 only
C.1 and 3 only
D.1, 2 and 3

Show Answer

Answer: A

Statement 1 is CORRECT: Negotiations for the CEPA were formally launched in 2010. Statement 2 is CORRECT: The goal is to more than double two-way trade to USD 70 billion by 2030. Statement 3 is INCORRECT: Canada was India's seventh-largest (not fifth) goods and services trading partner in 2024.

2. In the context of Canada's trade diversification strategy, which of the following statements is NOT correct? A) The strategy aims to reduce reliance on a single trading partner. B) The Indo-Pacific region is a key focus of this strategy. C) The strategy includes strengthening ties with Australia and Japan. D) The strategy prioritizes trade relations with European Union nations over Asian nations.

Show Answer

Answer: D

Options A, B, and C are correct regarding Canada's trade diversification strategy. Option D is NOT correct because the strategy prioritizes trade relations with Asian nations in the Indo-Pacific region, not European Union nations.

3. Which of the following sectors are expected to be the focus of discussions between India and Canada during Prime Minister Carney's visit? 1. Clean Energy 2. Artificial Intelligence 3. Defence Cooperation Select the correct answer using the code given below:

A.1 and 2 only
B.2 and 3 only
C.1 and 3 only
D.1, 2 and 3

Show Answer

Answer: D

All three sectors – Clean Energy, Artificial Intelligence, and Defence Cooperation – are expected to be the focus of discussions between India and Canada during Prime Minister Carney's visit, as stated in the provided context.