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Foreign direct investment into Canada is now at its highest level in almost 20 years, and as the country diversifies its trade partnerships, India has emerged as an important partner.1 Prime Minister Mark Carney’s visit to Mumbai and New Delhi this spring, the first bilateral visit to India by a Canadian Prime Minister since 2018, concluded with a joint statement, five government-to-government memorandums of understanding and a broad set of initiatives spanning trade, energy, critical minerals, infrastructure and investment.2
A comprehensive trade agreement by the end of 2026
The centrepiece of Canada and India’s renewed partnership is a commitment to conclude a Comprehensive Economic Partnership Agreement (CEPA) by the end of 2026. CEPA is a free trade agreement intended to provide preferential market access for Canadian goods and services, reduce barriers to trade and create rules that will enhance predictability for traders.3 The two countries signed the Terms of Reference, a framework document setting out the scope and objectives guiding CEPA negotiations, and launched formal negotiations, with the goal of more than doubling two-way trade to CA$70 billion annually by 2030. CEPA is expected to encompass goods and services trade, investment, agriculture and agri-food, digital trade, mobility and sustainable development. Momentum has continued since Prime Minister Carney’s visit to India in February and March; this past month, India sent its largest-ever trade mission to Canada, with more than 120 Indian companies represented.4
A strategic energy and infrastructure partnership
On March 2, 2026, Canada and India announced a Strategic Energy Partnership covering liquefied natural gas (LNG), liquefied petroleum gas (LPG), uranium, solar and hydrogen, aimed at deepening long-term cooperation across the energy value chain. The partnership reflects both countries’ shared commitment to energy security, diversification of supply and enhanced collaboration. The following are some key highlights of the Strategic Energy Partnership and broader infrastructure opportunities:
- Fossil fuels: Canada reaffirmed its plans to expand LNG supplies to the Indo-Pacific, with a stated goal of producing 50 million tonnes of LNG per year by 2030 and up to 100 million tonnes by 2040. The two governments are working toward India’s first long-term LPG supply arrangement with Canada. Canada also reaffirmed its plans to expand heavy oil export infrastructure.
- Nuclear: The partnership’s first concrete deliverable is a CA$2.6 billion agreement between Saskatoon-based Cameco and India’s Department of Atomic Energy for the supply of nearly 22 million pounds of uranium from 2027 to 2035.
- Clean energy: The two governments signed MOUs on critical minerals and clean energy cooperation; Canada announced its intention to join the International Solar Alliance and upgrade to full membership in the Global Biofuels Alliance; and the two countries committed to convening a Renewable Energy and Storage Summit in 2026 to expand and diversify trade of renewable energy and storage technologies into Canada, including through future procurements and supply chain partnerships.
- Infrastructure: India’s major infrastructure investments, from transport to smart cities, offer openings for Canadian engineering firms and pension funds. During his visit, Prime Minister Carney was accompanied by senior executives from Canada's nine major pension funds, who explored the potential for new investments in India's infrastructure sector. The two countries also committed to strengthening cooperation on infrastructure development.
Commercial momentum
Beyond the government-to-government agreements, Prime Minister Mark Carney’s visit generated more than 10 commercial agreements worth over CA$5.5 billion, including a CA$155 million commitment by Jubilant Pharmova Limited, a global pharmaceutical and life sciences company headquartered in India with more than CA$850 million investment in Canada, to triple the capacity of its sterile injectables facility in Kirkland, Québec. To sustain continued momentum between the two countries, they announced:
- Four reciprocal ministerial-led trade missions, including two visits to Canada and two visits to India, accompanied by business delegations, to unlock new commercial opportunities and deepen private-sector partnerships;
- the reconstitution of the India-Canada CEO Forum, a key platform to deepen private-sector engagement, identify new opportunities in trade, investment, innovation and supply chain resilience, and provide actionable recommendations to support CEPA negotiations; and
- the launch of a Finance Ministers' Economic and Financial Dialogue, which will bring together finance officials on issues such as payments modernization, financial stability, fintech innovation and capital markets development.5
Key takeaways
For businesses and investors, the renewed Canada-India partnership presents significant opportunities in trade, energy, critical minerals, infrastructure and investment. Ongoing CEPA negotiations are a development to monitor closely, as the eventual agreement is expected to set the legal framework for trade and investment between the two countries. Clients active in uranium, LNG, LPG, critical minerals, clean energy and pharmaceuticals should particularly monitor developments between the two nations, as long-term supply arrangements and offtake opportunities are already taking shape.
Dentons is uniquely positioned to assist you with any Canada-India opportunities and legal needs. With our Dentons Link Legal presence across all major Indian cities, Dentons is the first global law firm to combine with a law firm in India, and we are able to provide access to uniquely global and deeply local legal solutions. For more information about Dentons Link Legal, please reach out to Anand Srivastava and Nusrat Hassan.
Should you have any questions about the Canada-India partnership or other opportunities related to public infrastructure, major projects or international trade, please do not hesitate to contact the authors Lampros Stougiannos, Ali Amadee and Anoosh Loertscher, or any member of Dentons’ Infrastructure and Public-Private Partnerships, Regulatory or Government Affairs and Public Policy groups.
The authors wish to thank Naomi Jauvin, a law student in the Montréal office, for her valuable contribution to this article.
Footnotes
1. Prime Minister of Canada, “Prime Minister Carney secures ambitious new partnership with India focused on energy, talent, and technology” (2 March 2026). ↩
2. Prime Minister of Canada, “Joint statement by Prime Minister Carney and Prime Minister Modi” (2 March 2026). ↩
3. Global Affairs Canada, “Canada's objectives for negotiations for a Canada-India Comprehensive Economic Partnership Agreement”. ↩
4. Global Affairs Canada, “Canada-India relations”. ↩
5. Prime Minister of Canada, “Factsheet on deliverables announced during the visit of Prime Minister Mark Carney to India” (2 March 2026). ↩
About Dentons
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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances. Specific Questions relating to this article should be addressed directly to the author.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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