New Delhi: India and Canada have held high-level discussions in the capital to strengthen cooperation in energy security, critical minerals, and renewable energy. The meeting, considered highly significant, comes at a time when India recently finalized a Free Trade Agreement (FTA) with the European Union.
Commerce and Industry Minister Piyush Goyal met with Tim Hudson, Canada’s Minister of Energy and Natural Resources, to explore ways to collaborate in areas crucial for both countries’ growth. India views Canada as a key partner because it possesses resources essential for accelerating India’s development. Meanwhile, China is reportedly observing the developments closely, given the strategic importance of critical minerals.
Sharing images from the meeting on social media, Goyal mentioned that he also gave Hudson a tour of the new Parliament building, a blend of modern and traditional architecture. The discussions focused on mutual development, energy security, critical minerals, and renewable energy collaboration.
Canada Looks Toward India
Canada, traditionally a close U.S. ally, is now seeking to diversify its trade partners and reduce dependence on America, a move prompted by U.S. President Donald Trump’s aggressive tariff policies and trade rhetoric. Hudson highlighted India’s growing energy demand as a significant opportunity for Canada, which holds vast reserves of oil, gas, and critical minerals. Strengthening ties with India could enhance both nations’ economic resilience and security.
Hudson noted that Canada produces 6% of the world’s oil but exports less than 1% to India. Increasing this share would benefit both countries. He added that limiting 98% of energy exports to the U.S. had been a “strategic mistake,” signaling Canada’s intent to restructure its economy and expand relationships with other global partners.
Impact of India-EU Deal
Hudson indirectly criticized the U.S. administration, describing global economic shifts as a “disruption” rather than a slow transition. He praised India-EU FTA as an exemplary response against hegemonic pressures, sending a strong message in favor of free trade and reliable partners.
Trade Figures and Future Prospects
Currently, India-Canada bilateral trade stands at $30 billion, with Canadian Prime Minister Mark Carney aiming to double this figure by the decade’s end. Following a meeting between India’s Petroleum and Natural Gas Minister Hardeep Singh Puri and Hudson, a delegation will be sent to discuss joint efforts on critical minerals. Both sides also issued a joint statement highlighting Canada’s ambition to become an energy “superpower.”
Canada has indicated it will expedite formal FTA negotiations with India, signaling renewed momentum in bilateral trade relations. India’s High Commissioner in Canada, Dinesh Patnaik, stated that Canadian PM Mark Carney may visit India in the first week of March, with agreements expected on uranium, energy, minerals, and artificial intelligence. Formal talks on a Comprehensive Economic Partnership Agreement (CEPA) could also commence in March. This follows the resumption of previously delayed trade negotiations in November last year.
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