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A host of deals, including one to supply India with uranium, is unveiled as Mark Carney meets Narendra Modi in Delhi.
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Narendra Modi and Mark Carney also struck agreement in areas such as technology, critical minerals, space, defence and education.
Carney said they agreed to conclude a free trade deal, years in the making, by the end of 2026. Both countries want to reduce exposure to punitive US trade tariffs.
Under Carney, the two governments are trying to repair ties that were strained when his predecessor accused Delhi of a link to the 2023 assassination of Sikh separatist Hardeep Singh Nijjar on Canadian soil.
India vociferously rejected the allegation by Justin Trudeau.
Trade and diplomatic relations almost came to a standstill as both sides expelled each other's diplomats and cancelled visa services. Canada hosts a huge expatriate Indian community.
But since Carney took office last year, the relationship has been cautiously rebuilt —helped by the fact that his government has said it believes India is not currently linked to violent crimes or threats on Canadian soil.
Some in Canada have countered that claim, however, including a Liberal MP from Carney's own party and members of the Sikh diaspora in Canada, who say they believe they continue to be targeted by India.
Canada's spy agency listed India late last year as one of the countries carrying out espionage and foreign interference in the country, along with Russia, China and Iran.
In a statement on Monday, the Canadian Security Intelligence Service said its "threat assessment of the main perpetrators of foreign interference and espionage against Canada has not changed".
Canada's foreign minister Anita Anand has distanced herself from comments made by a senior Canadian official saying that India had ceased all foreign interference in Canada.
"The words of the senior official are not words that I personally would use," she told reporter
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