India, Canada ink rare earth pacts, push FTA

India and Canada on Monday firmed up agreements on critical minerals and the supply of uranium ore, and finalised the terms of reference for negotiations on a free trade deal, as Prime Minister Narendra Modi and his Canadian counterpart Mark Carney pledged to build on the normalisation of ties by expanding trade and deepening security cooperation.

- Rezaul H Laskar and Anirudh Bhattacharyya

Prime Minister Narendra Modi with his Canadian counterpart Mark Carney in Delhi on Monday.

Carney was on a four-day visit to India as part of efforts by the two sides to rebuild ties that went into a tailspin in 2023 after former PM Justin Trudeau alleged Indian government agents were linked to the killing of a Khalistani separatist. The rapprochement began when Modi met Carney on the margins of the G7 Summit in Canada last June and the two sides later unveiled a road map to reset the relationship.

Besides a memorandum of understanding (MoU) on the mining and processing of critical minerals, India’s Department of Atomic Energy and Canada's Cameco, one of the world's largest publicly traded uranium companies, signed a $2.6-billion agreement for the supply of 22 million pounds of uranium ore during 2027-2035. The two sides reiterated plans to increase two-way trade, with Modi and Carney emphasising the importance of bolstering commerce and investments by concluding a trade deal within the year.

“Since our first meeting, our relations have been filled with new energy, mutual trust and positivity. I credit my friend PM Carney for the growing momentum in every area of cooperation,” Modi said at a joint media interaction, speaking in Hindi.

“Our goal is to reach $50 billion in trade by 2030. Unlocking the full potential of economic cooperation is our priority.

Therefore, we have decided to finalise the Comprehensive Economic Partnership Agreement (CEPA) soon," Modi said.

Carney, the first Canadian PM to visit India in eight years, backed stronger trade and defence ties in a world witnessing "profound transformation".