Canada and India are set to significantly expand trade in oil, gas and petroleum products as both countries move to reset their relationship after months of diplomatic strain. The renewed energy cooperation will be formally announced during India Energy Week in Goa, marking a fresh chapter in bilateral ties.
According to a joint statement, Canada will increase exports of crude oil, liquefied natural gas (LNG) and liquefied petroleum gas (LPG) to India. In return, India will boost shipments of refined petroleum products to Canada. The announcement follows talks between Canadian Energy Minister Tim Hodgson and India’s Petroleum and Natural Gas Minister Hardeep Singh Puri.
The two sides will also relaunch a “ministerial energy dialogue,” a key cooperation mechanism that had remained inactive following a diplomatic dispute linked to the killing of a Canadian Sikh activist. The revival of this platform signals a broader effort to move past tensions and focus on economic priorities.
For Canada, the move is part of Prime Minister Mark Carney’s strategy to diversify export markets amid rising trade friction with the United States. India, one of the world’s fastest-growing energy consumers, offers a major opportunity for Canadian producers looking to expand beyond North America.
Beyond traditional oil and gas, both countries have agreed to explore cooperation in future-focused areas such as hydrogen, biofuels, battery storage, critical minerals, electricity systems and the use of artificial intelligence in the energy sector. They will also work to encourage greater two-way investment in each other’s energy industries.
Two-way goods trade between Canada and India reached C$13.3 billion in 2024, but officials say there is significant untapped potential, particularly in energy and critical minerals. India currently accounts for just 1% of Canada’s critical minerals exports.
Prime Minister Carney is expected to visit India in the coming weeks to further advance talks on a comprehensive economic partnership agreement, underlining the growing strategic and economic importance of the renewed Canada-India relationship.
