NEW DELHI – On Monday, India and Canada took significant steps to enhance their economic collaboration, marking a new chapter in their relationship after a challenging two-year period.

Following discussions with Canadian Prime Minister Mark Carney, Indian Prime Minister Narendra Modi announced plans to finalize a “comprehensive economic partnership” soon. This agreement aims to elevate bilateral trade to an impressive $50 billion by the year 2030.

Over the past year, India and Canada have been working steadily towards negotiating a long-awaited trade agreement. This effort comes as Carney seeks to rebuild connections with New Delhi, restore diplomatic communication, and stabilize the nations’ ties.

Carney expressed optimism that both countries could finalize the trade deal by the year’s end.

“This initiative represents more than just a renewal of relations; it signifies the expansion of a cherished partnership characterized by fresh ambition, focus, and vision,” Carney stated.

Relations had soured after Canadian officials accused India of involvement in the June 2023 killing of a Canadian Sikh activist near Vancouver. India strongly refuted these claims, accusing the administration of former Canadian Prime Minister Justin Trudeau of supporting Sikh extremists linked to the Khalistan movement. This movement, which seeks to establish an independent Sikh homeland, is prohibited in India.

The fallout saw both sides expel senior diplomats and suspend some visa services.

Relations improved last year in June when Carney invited Modi to the G7 summit in Alberta.

After the talks on Monday, Modi said India and Canada signed a nuclear agreement under which Canada will supply uranium to India. The two countries would also work to strengthen defense industries and enhance maritime domain awareness, he said.

Officials from both sides also exchanged a series of memoranda of understanding spanning areas including critical minerals, energy and cultural cooperation.

Carney is expected to leave for Australia and Japan later Monday, part of his effort to diversify trade away from the United States. He has set a goal for Canada to double its non-U.S. exports in the next decade, saying American tariffs are causing a chill in investment.