India-Canada Trade Talks Relaunch: Paving the Way for USD 50 Billion Bilateral Growth

He addressed the event in New Delhi and described this agreement as a demonstration of trust between India and Canada.File Photo.

India and Canada are set to relaunch negotiations on a long-awaited free trade agreement. It is a significant step in reviving economic ties after relations had a diplomatic low last year. On Monday, Commerce and Industry Minister Piyush Goyal confirmed that the two nations would begin discussions on a high-ambition Comprehensive Economic Partnership Agreement (CEPA), which is focused on raising bilateral trade to USD 50 billion by 2030.

He addressed the event in New Delhi and described this agreement as a demonstration of trust between India and Canada. He noted that the pact is likely to boost investor confidence and provide a stronger framework for businesses on both sides. “There is a lot that we can learn from Canada and a lot we can offer Canada,” he added. He also highlighted opportunities in critical minerals, processing technologies, nuclear energy collaboration, and supply chain diversification. On uranium engagement, he said, “There is a good possibility on nuclear energy—particularly with our engagement with Canada on uranium supplies.”

This move follows a diplomatic reset under Prime Minister Mark Carney, who succeeded Justin Trudeau, after the previous Canadian government alleged Indian involvement in the killing of Hardeep Singh Nijjar in 2023, an accusation India rejected as “absurd”. Modi and Carney held bilateral discussions during the G7 summit in June and set the stage for rebuilding political and economic ties.

Under the Early Progress Trade Agreement (EPTA), trade negotiations between the two countries were formally relaunched in 2022. Since then, multiple rounds of discussions have focused on emerging sectors such as artificial intelligence, quantum computing, machine learning, and data centres. Goyal highlighted actionable outcomes, sectoral roadmaps, and measurable progress. He also called for the revival of the CEO forum in the first quarter of 2026 and for advancing the Australia-Canada-India Technology and Innovation (ACITI) Partnership.

According to recent trade data, India’s exports to Canada rose 9.8% to USD 4.22 billion in 2024-25, while imports reduced to 2.33% worth USD 4.44 billion. With total bilateral trade in goods and services standing at USD 18.38 billion in 2023. Canada hosted around 2.9 million people of Indian origin and over 427,000 Indian students, underscoring deep social and economic links.

The relaunch of CEPA talks reflects a broader vision to diversify supply chains, deepen technology collaboration, and strengthen bilateral trade, making it a defining moment in India-Canada relations. As Goyal said, this partnership is not just a pact but a pragmatic platform for strategic growth and innovation in the upcoming years.