Renewed optimism in Canada-India economic ties, says business council leader

Canadian investors and businesses are looking at India with renewed optimism against the backdrop of attempts by both countries to recondition their bilateral ties, said Victor T. Thomas, president and CEO of the Canada-India Business Council.

“The new Canadian Prime Minister, Mark Carney, has certainly signalled the opportunity to engage with India, including inviting Prime Minister [Narendra] Modi to the G-7 Summit. In many ways, this was a reset in Canada-India relations, as trade diversification has been a major focus in Canada in 2025.”

This gesture was more than symbolic — it demonstrated a strategic recognition of India’s growing global economic importance. PM Carney’s tone and early actions have re-established some trust on the India file and reignited some bilateral momentum. The business community sees this as an opportunity to rebuild and grow the commercial relationship and hopefully finally sign an Early Progress Trade Agreement after our closest allies, like Australia, and most recently, the U.K., have paved the way,” Mr. Thomas said.

Mr. Thomas said that the business community is encouraged by recent signals arising from the meeting of the Prime Ministers and the move to restore the respective High Commissioners in Ottawa and New Delhi. India and Canada withdrew their respective High Commissioners in 2024, following allegations that Indian agents had orchestrated the killing of a Khalistani separatist in Canada.

“The business community values stability and predictability and has continued to make deals and stay active despite recent diplomatic challenges. These are encouraging signals for long-term business planning and I’m cautiously optimistic that relations will continue to improve,” said Mr. Thomas.

According to Mr. Thomas, India presents enormous potential for Canadian firms looking to diversify beyond the U.S. market. Canada and the U.S. are locked in a trade war. “Canadian companies already active in India are seeing real success, on the investment side of things, particularly in infrastructure and real estate. This year, investments from Canada into India — both direct and indirect — hovers around CA $100 billion! There are still many untapped opportunities to explore and with complementary strengths in sectors like agri-food, energy, education, and resources, there’s far more we can achieve together,” he said.