Overview : After a diplomatic rupture following the Nijjar killing , India and Canada have taken concrete steps to normalise relations. Prime Minister Mark Carney ’s visit to New Delhi and talks with Prime Minister Narendra Modi resulted in renewed momentum on trade, energy and security cooperation. Key Developments (April 2024) Agreement on the CEPA terms of reference, targeting a finalised deal within the year. Signing of a uranium supply agreement . Commitment to joint projects in renewable energy, technology, innovation and the establishment of a defence dialogue. High‑commissioners exchanged, and NSA Ajit Doval visited Ottawa, discussing the Khalistan issue and foreign interference. Both sides signalled willingness to address lingering accusations over extremist groups and transnational repression. Important Facts The diplomatic thaw is shaped by broader geopolitical shifts. The United States under President Donald Trump pursued unilateral trade and foreign‑policy moves, prompting countries to diversify partnerships. Canada’s outreach aligns with its strategy to engage “ middle powers ” and to balance relations with China, despite concerns over Chinese supply‑chain dominance. Carney’s earlier speech at the Davos Economic Forum advocated for multilateral cooperation among middle powers, a message that resonated with India’s own strategic autonomy. UPSC Relevance International Relations (GS2) : The case illustrates how bilateral disputes (e.g., the Nijjar incident) can be managed through diplomatic engagement, high‑level visits, and trade negotiations. Economic Diplomacy (GS3) : The CEPA and uranium deal highlight the role of trade agreements in securing energy resources and fostering technology transfer. Security & Counter‑terrorism (GS2) : Discussions on the Khalistan issue and foreign interference reflect challenges of transnational extremism and the need for intelligence cooperation. Strategic Autonomy (GS4) : India’s alignment with other middle powers underscores its pursuit of an independent foreign‑policy stance amidst great‑power competition. Way Forward For a sustainable partnership, both governments must: Institutionalise regular high‑level dialogues on security, trade and energy. Address contentious issues transparently, especially allegations of interference and extremist financing. Leverage the CEPA framework to boost bilateral trade, focusing on sectors where comparative advantage exists. Maintain a balanced approach toward China while deepening cooperation with other middle powers. Continued confidence‑building will be essential to convert the recent diplomatic overtures into a long‑term, mutually beneficial relationship.