New Delhi/Ottawa (Rajeev Sharma): Energy cooperation and critical minerals are set to form the foundation of renewed trade ties between India and Canada as the two countries move to reset relations after a prolonged diplomatic freeze, a senior Canadian minister has said.
Canada’s Minister of Energy and Natural Resources, Tim Hodgson, said India’s rapidly growing energy demand presents a major opportunity for Canada, which has abundant reserves of oil, natural gas and critical minerals. Speaking to Bloomberg Television on the sidelines of India Energy Week in Goa on Wednesday, Hodgson said deeper energy links would strengthen both economies.
Canada currently produces about six per cent of the world’s oil, yet India sources less than one per cent of its crude from the North American country, Hodgson noted. Increasing that share, he said, would make both nations “stronger, more resilient and more secure.”
India and Canada’s relationship deteriorated sharply in 2023 after former prime minister Justin Trudeau alleged Indian involvement in the killing of Canadian citizen and Sikh activist Hardeep Singh Nijjar. After years of strained engagement, both sides are now signalling a willingness to rebuild cooperation, particularly as U.S. President Donald Trump intensifies economic pressure through tariffs and trade measures.
Hodgson said the global trade environment has shifted away from deeper integration toward the use of tariffs and economic ties as tools of leverage. As a result, Canada is looking to “rewire its economy” by diversifying trade partnerships beyond its traditional allies.
Canadian officials are working with international partners to develop new frameworks for critical minerals trade, including long-term off-take agreements and strategic stockpiling. Hodgson said this could involve supplying high-grade Canadian uranium to support India’s target of building 100 gigawatts of nuclear power capacity by 2047.
India could also benefit from Canada’s expanding liquefied natural gas (LNG) exports. Canada’s LNG facility, which began operations in June with an annual capacity of 12 million tonnes, is expected to expand to 50 million tonnes. Major global energy companies, including Shell, Petronas, Korea Gas Corp. and China’s CNOOC, are already sourcing LNG from Canada at competitive prices, Hodgson said.
Bilateral trade between the two countries currently stands at around $30 billion, Hodgson said during a panel discussion at the event. He added that Canadian Prime Minister Mark Carney expects trade volumes to double by the end of the decade as cooperation deepens.
The renewed engagement follows recent high-level interactions, including the India-Canada Ministerial Dialogue on Trade and Investment under the New Roadmap 2025 framework, signalling a cautious but strategic reset in ties.
