Context:

From November 11 to 14, 2025, Maninder Sidhu, Canada’s Minister of Export Promotion, International Trade, and Economic Development, visited New Delhi at the invitation of Union Commerce and Industry Minister Piyush Goyal. The visit led to a joint statement underscoring closer cooperation in critical minerals, trade, and investment.

Key Highlights of the Engagement:

Strengthening Critical Minerals and Clean Energy Collaboration

• • • Both countries agreed to encourage long-term supply chain partnerships in critical minerals.
    • Focus on clean energy collaboration, crucial for the global energy transition and industrial expansion.
    • The initiative aims to secure stable access to minerals vital for sectors such as batteries, renewable energy technologies, and electric mobility.

Expanding Trade and Investment Opportunities:

• • • Both Ministers committed to identify and expand investment and trading opportunities in:
      • Aerospace
      • Dual-use capabilities (civilian and defence applications)
    • This aligns with India’s strategy to integrate into global high-tech value chains and enhance industrial competitiveness.

Significance:

1.       Strategic and Economic Alignment: Strengthening supply chains in critical minerals supports India’s energy security and industrial ambitions.

2.      High-Tech Collaboration: Expansion in aerospace and dual-use sectors fosters technology transfer, innovation, and investment flows.

3.      Diversification of Trade: Reinforces India’s strategy to diversify trade partners and reduce reliance on single sources for critical inputs.

4.     Global Energy Transition: Collaboration in clean energy and critical minerals aligns with net-zero commitments and sustainable development goals.

About India–Canada Relations:

India and Canada share historic ties, with diplomatic relations established in the 19th century. Both are members of the Commonwealth and G20. Trade between the two countries reached $9.36 billion in 2023.

• •  After Indian independence, Canada played a role in development aid, especially through the Colombo Plan. However, relations soured after India’s 1974 nuclear test using a Canadian reactor. The 1985 Air India bombing by Khalistani extremists based in Canada further strained ties.
  • Economic liberalisation in the 1990s revived interest, and the 2010 Nuclear Cooperation Agreement marked progress. However, recurring tensions over Canada’s perceived leniency toward pro-Khalistan groups remain a major roadblock.
  • Despite challenges, strong diaspora and economic links continue to provide opportunities for rebuilding trust and long-term cooperation.

Conclusion:

The India-Canada engagement marks a renewed commitment to trade, investment, and strategic partnerships, particularly in sectors critical for industrial modernization and energy transition. It demonstrates the role of economic diplomacy in strengthening bilateral relations and fostering global value chain integration.