Goa / New Delhi: Canada is actively pivoting towards India to expand energy and critical mineral ties as global trade dynamics shift, particularly under protectionist moves by the United States, Canadian officials said on the sidelines of India Energy Week in Goa.
At the event, Tim Hodgson, Canada’s Energy and Natural Resources Minister, underscored that India’s rapidly growing energy demand offers a “great opportunity” for Canadian producers of oil, gas, and critical minerals, reported Hindustan Times. Canada currently produces about 6 % of the world’s oil, yet India imports less than 1 % of its oil from Canada, Hodgson noted, signalling scope for expansion that could enhance resilience and security for both economies.
Hodgson described the emerging Canada-India energy partnership as part of Ottawa’s broader efforts to diversify trade beyond its traditional reliance on the United States — a strategy prompted by economic tensions with Washington under US President Donald Trump’s administration. “We used to be in a world where we sought to integrate with our closest trading partners, and we now find that that integration is used for coercion … or tariffs are used to gain leverage,” said Hodgson, as quoted by Hindustan Times.
The diplomatic reset also reflects warming ties after years of strain, including a period of frosty relations with Canada under former Prime Minister Justin Trudeau. Leaders on both sides agreed to deepen bilateral energy trade and collaboration in resources such as lithium, cobalt, and rare earth elements — essential for electric vehicles, renewables, and defence technologies.
India’s Oil Minister Hardeep Singh Puri said after meeting Hodgson that India plans to send a delegation soon to discuss joint work on critical minerals. State-owned Oil India Limited (OIL) is part of a group aiming to secure supplies of these materials in Canada.
A joint statement from the two ministers described Canada’s ambition to become an “energy superpower” through diversified exports, with India viewed as a “natural and symbiotic” partner due to its scale and long-term demand prospects.
The push for broader engagement also comes amid wider global trade realignments. Canadian Prime Minister Mark Carney is expected to visit India in March, with talks likely to focus on uranium, gas, and other sectors. Carney has publicly stated that “there’s almost nothing normal in the United States now,” reflecting frustration with US trade policy and reinforcing Canada’s drive to diversify markets.
In parallel, India has recently concluded a free trade agreement (FTA) with the European Union, hailed by Prime Minister Narendra Modi as a “perfect example of a partnership” involving nearly a fourth of global GDP. Under the deal, the EU will eliminate or reduce tariffs on most Indian imports, while India will reciprocate on EU exports — a pact also seen as part of India’s broader strategy to mitigate tariff pressures from the US.
Currently, both India and Canada face significant US tariffs — India at around 50 % (including penalties over Russian oil purchases) and Canada at about 35 % — driving urgency in strengthening alternative trade relationships.
Canada’s Foreign Minister Anita Anand, who has spoken candidly about the need to diversify Canada’s trade, emphasized that Ottawa will expand its international economic partnerships and not remain overly dependent on its southern neighbour.
