India and Canada Relaunch Economic and Strategic Cooperation
UPSC Relevance
Prelims: International Relations (India-Canada relations, Comprehensive Economic Partnership Agreement - CEPA, G7); Science & Technology (Small Modular Reactors - SMRs, Artificial Intelligence - AI, Critical Minerals); Economy.
Mains:
General Studies Paper 2 (International Relations): Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests; Effect of policies and politics of developed and developing countries on India’s interests. The role of the Indian diaspora is also a key, often challenging, aspect of the India-Canada relationship.
Key Highlights from the News
India-Canada relations, which worsened in 2023 due to the killing of a Khalistani terrorist, are set to normalize.
This significant decision was made during discussions between the Indian Foreign Minister and the Canadian Foreign Minister.
Key areas for resuming cooperation:
Energy Dialogue, especially in renewables and critical minerals.
Trade and investment discussions. The old Comprehensive Economic Partnership Agreement (CEPA) talks might be abandoned, with new ones potentially starting.
Science and Technology Cooperation.
Civil nuclear energy cooperation, especially in Small Modular Reactors (SMRs) technology.
The diplomatic decision of compartmentalization, not allowing security issues to affect other areas of cooperation, is behind this change.
A meeting between the prime ministers of both countries at the G7 summit paved the way for improving relations.
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