India and Canada will work together to secure supply chains in

critical minerals and clean energy, according to a joint statement, signalling a reset in bilateral ties amid trade tensions driven by U.S. policies.

The two nations will also deepen engagement to widen investment and trading opportunities in the aerospace sector, the statement issued Friday said.

Relations between the two countries have been rocky since 2023, when then-

prime minister Justin Trudeau publicly accused India of killing a Sikh separatist leader outside a temple in Surrey, B.C. Prime Minister

Narendra Modi ’s government denied involvement and blamed Canada for harbouring Sikh separatist groups, resulting in a pause in trade talks.

However, United States President Donald Trump ’s trade policies have pushed the nations to revisit their positions as countries across the globe scramble to diversify supply chains and find new markets to shield their economies from Washington’s tariff onslaught. Trump singled out India for purchasing Russian oil and imposed a crushing tariff of 50 per cent that hit more than half of Indian exports to the U.S.

The U.S. halted all trade talks with Canada in late October over a Canadian advertisement against Trump’s tariff policy.

After Mark Carney became Canada’s prime minister, the two countries have taken a series of steps in repairing ties, including restoring their envoys and seeking to establish a information-sharing framework to curb cross-border crime. Earlier this week, Foreign Minister Subrahmanyam Jaishankar met his counterpart, Anita Anand, in Ontario while Canadian Trade Minister Maninder Sidhu is visiting India.

  • Canada, India boost diplomatic ties
  • U.S. slaps India with 50% tariffs

Bilateral trade in goods and services stood at US$23.66 billion in 2024, with merchandise trade valued at nearly US$8.98 billion, a substantial 10 per cent increase over the previous year, according to the statement.