(MENAFN- Live Mint) India has extended an invitation to Canadian Prime Minister Mark Carney to visit New Delhi for talks with Prime Minister Narendra Modi, a move that could set the stage for a comprehensive economic and free-trade partnership.

The Globe and Mail Canada reported that Mark Carney has been invited to attend next year's Artificial Intelligence Action Summit in New Delhi. The 2025 edition of the summit, which included heads of state, CEOs, and AI leaders, was held in Paris.

India's new High Commissioner to Canada, Dinesh Kumar Patnaik, confirmed that PM Modi would ensure time for discussions on bilateral issues if Carney accepted the invitation.

"We are hoping he accepts. If not, we will always find some time when we can do this before March," he said.“I want him to go before May when it really heats up.”

Efforts to repair diplomatic ties

Dinesh Kumar Patnaik said both countries are making a“sincere effort” to repair the strained diplomatic relations and prioritise trade and investment, especially amid ongoing tariff tension with the United States.

Free-trade negotiations were paused in the fall of 2023 after then-Prime Minister Justin Trudeau accused the Modi government of involvement in the killing of Sikh activist Hardeep Singh Nijjar in Surrey, Canada.

There were other allegations which linked Indian government agents to homicides, extortion, and other violent activities in Canada. The Indian government refuted these allegations.

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Diplomatic ties began normalising after Carney and Modi met at the G7 summit in Alberta in June. High-level bilateral discussions have continued since the summer, focusing on national security and economic cooperation, according to The Globe and Mail Canada.

Potential for massive trade growth

Patnaik said a comprehensive trade agreement could push annual bilateral trade past $50 billion. In 2024, India and Canada recorded $23.6 billion in trade - a $12.7 billion jump from 2023.

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Patnaik told the Globe and Mail that a formal trade agreement could easily double this value. "If Canada wants to start negotiations, we would be more than happy to speed up things, to do it in a fast way," he said.“You are looking at minimum of $50-billion if we allow the proper environment for it.”

Key areas for economic cooperation

India is eyeing several sectors for trade with Canada, including oil, gas, nuclear power, battery storage, fertilisers, processed food, and agricultural products. The country is also open to cooperation on AI and quantum computing.

“We want an early visit of the Prime Minister (Mark Carney) to India,” Patnaik said.“It is a relationship we do not want to go downhill.”

Patnaik also specifically mentioned that Canadian canola could find a large market in India, the world's largest consumer of cooking oil. This might help Canada diversify away from China after it recently banned Canadian canola. However, he noted that a marketing campaign would be necessary as Indians typically prefer cooking oils from sunflowers, palm, rapeseed, and mustard.

India is also open to investing in Canadian energy and critical minerals, but requires Ottawa to guarantee clear investment rules, environmental standards, and recognition of aboriginal title. Patnaik issued a subtle warning, noting that if Canada doesn't come, India will find other suppliers.“It's not a [India] market where we can wait forever for Canada to come sell to us,” he told the Globe and Mail Canada.

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