India, Canada reset relationship with energy deal

The foreign ministers of India and Canada on Monday inked a new framework for cooperation between their countries. The agreement largely focused on energy—both countries committed to increasing two-way trade for natural gas and liquefied petroleum gas. They also agreed to collaborate on climate and renewable energy goals for developing biofuels and carbon capture programs. Canada also agreed to further dialogue about providing India with uranium and minerals needed for energy security.

Why have they been at odds? The agreement reset the relationship between the two countries after years of tensions over the 2023 death of a Sikh activist in Canada. The Canadian government alleged that India was behind the death of the Canadian citizen, who supported a Sikh group deemed terrorists by India. In the ensuing fallout, the two countries expelled each other’s diplomats, and Canada investigated Indian officials. Violent protests also broke out in Ontario in November 2024 outside an event hosted by the Indian consulate. India and Canada did not appoint new head diplomats to send to each other until late August 2025, according to the text of the Monday agreement.

What else did India and Canada agree to do?

• Revive the Canada–India CEO Forum in 2026, which will convene business leaders to make recommendations to both governments on trade and investment policies. The forum will focus on improvement in clean technology, infrastructure, agriculture, and digital innovation.

• Plant more Canadian academic campuses in India.

• Share best practices and technology in agriculture.

Dig deeper: Read Josh Schumacher’s report on tensions between India and Canada during the investigation into the Sikh activist's death.