tl;dr
India and Canada unveil a renewed partnership focused on AI and digital collaboration, boosting trade to $23.66 billion and addressing challenges like job displacement and ethical AI governance.
**India and Canada Reinvigorate Bilateral Ties Through AI and Digital Collaboration**
India and Canada have unveiled a renewed roadmap to stabilize, rebuild trust, and reinvigorate their bilateral relationship, marking a significant shift after years of diplomatic tension. The two nations have prioritized collaboration in artificial intelligence (AI) and digital public infrastructure (DPI), signaling a strategic focus on innovation and economic resilience amid global uncertainties.
**A Diplomatic Reset**
The revival comes nearly two years after strained relations over allegations of India’s involvement in the 2023 killing of Sikh separatist Hardeep Singh Nijjar in Canada. Prime Ministers Narendra Modi and Justin Trudeau (prior to his departure) announced plans to restore diplomatic ties, including the appointment of new high commissioners. Since the reset, bilateral trade has surged to $23.66 billion in 2024, reflecting growing economic engagement.
Canadian Foreign Minister Anita Anand, who recently visited India, emphasized the importance of strengthening ties through shared democratic values and economic cooperation. “A strong Canada-India relationship is essential to mitigate vulnerabilities from shifting global alliances and ensure reliable supply chains,” she stated, highlighting areas like AI, energy, agriculture, and climate action.
**AI and DPI: The New Pillars of Cooperation**
Central to the renewed partnership is a focus on AI and DPI. Both countries have committed to expanding access to AI, with Canada encouraging its firms and researchers to engage with India’s upcoming AI Impact Summit in February 2026. They also plan to relaunch the India-Canada Joint Science and Technology Cooperation Committee (JSTCC), which last met in 2022 to discuss collaboration in health sciences, clean technologies, and quantum computing.
India’s DPI initiatives, such as the Unified Payments Interface (UPI) and Aadhaar, serve as global benchmarks. UPI, which processes half of the world’s real-time payments, is expanding internationally, with Canada potentially next. The collaboration aims to leverage these systems to enhance digital governance and financial inclusion.
**The AI Paradox: Innovation vs. Job Displacement**
While AI offers transformative potential, both nations acknowledge its challenges. Canada’s chief data officer, Stephen Burt, warned of public sector job losses from AI integration, while a 2024 poll revealed half of Canadians view AI as a threat. Similarly, India’s NITI Aayog projects up to 2 million job losses in its tech sector, though it also forecasts 4 million new roles in an AI-driven economy.
India’s Chief Economic Advisor, V. Anantha Nageswaran, stressed the need for “supporting institutions” to reskill workers, noting, “The keyword is ‘eventually’—but the transition period requires urgent action.”
**Balancing Opportunities and Risks**
As both countries navigate the dual imperatives of innovation and labor market stability, they are also addressing ethical AI governance. Experts highlight the importance of integrating enterprise blockchain systems to ensure data integrity and security, which could underpin AI’s ethical deployment.
**Looking Ahead**
The India-Canada partnership underscores a broader effort to balance technological advancement with social responsibility. By fostering AI-driven economic growth while mitigating job displacement, the two nations aim to set a precedent for global collaboration in the digital age. As Minister Jaishankar noted, “We seek to derisk the international economy through strong, deep partnerships.”
With renewed diplomatic momentum and a shared vision for AI and DPI, India and Canada are positioning themselves as key players in shaping a resilient, equitable future.