He emphasized that an FTA with Canada’s $2.5 trillion economy would enhance India’s strengths. The Minister plans to engage with the Maple Eight pension funds, the eight largest pension funds in Canada, regarding possible investments in India.
The Minister highlighted critical minerals for electric vehicles (EVs) and electronics as another area where Canada could collaborate with India, noting that Canada can assist India in the nuclear energy sector due to its status as the world’s second-largest uranium producer.
Regarding the recent decline in the value of the Indian Rupee, he stated that the government refrains from interfering in exchange rates, which are driven by market forces and various global influences. He remarked that the rupee has seen a slight appreciation in recent days and mentioned that the government is taking steps to boost exports and promote import substitution.
On May 8, India and Canada wrapped up the second round of FTA negotiations in New Delhi, which took place from May 4 to 8. A joint statement released at the conclusion indicated that discussions were held according to the Terms of Reference agreed upon by the Trade Ministers of both nations on March 2. The statement noted constructive and productive interaction between both sides, reaffirming their shared commitment to advance a balanced, ambitious, and mutually beneficial agreement aimed at strengthening bilateral trade and economic relations.
In-depth discussions occurred on Trade in Goods, Trade in Services, Intellectual Property, Rules of Origin, Sanitary and Phytosanitary Measures, and Technical Barriers to Trade, while both parties agreed to maintain negotiations in a “constructive and cooperative spirit.” The next round of discussions is scheduled for July 2026 in Ottawa, Canada, with ongoing engagements planned in the interim.
Government sources previously indicated that India seeks to gain from the complementary trade relationship with Canada, as both countries do not compete in most sectors. Future negotiations are expected to encompass trade in goods, services, and other mutually agreed policy areas, including market access, labor mobility, and education.
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Canada boasts a market of 41.65 million people (2025) and a GDP of $2.34 trillion at PPP. According to DGCI&S data, bilateral trade reached $8.66 billion in FY 2024-25 (with exports valued at $4.22 billion and imports at $4.44 billion).
Key exports from India to Canada include pharmaceuticals, iron and steel, seafood, cotton garments, electronic goods, and chemicals. In contrast, India’s primary imports from Canada consist of pulses, pearls and semiprecious stones, coal, fertilizers, paper, and petroleum crude. Significant sectors for India’s services exports to Canada include telecommunications, computer services, and other business services. These sectors are anticipated to experience substantial growth following the conclusion of the CEPA.
Commerce and Industry Minister Piyush Goyal is expected to lead India’s trade delegation to Canada later this month, accompanied by a business delegation. On March 2, India and Canada initiated negotiations for the Comprehensive Economic Partnership Agreement (CEPA) in New Delhi, aiming for a swift conclusion.
The Terms of Reference (ToR) for the India-Canada CEPA were signed by India’s Commerce and Industry Minister Piyush Goyal and Canada’s Minister of International Trade Maninder Sidhu, exchanged in the presence of India’s Prime Minister Narendra Modi and Canada’s Prime Minister Mark Carney at Hyderabad House in New Delhi.
The ToR will outline the structure, frequency, and approach for the CEPA negotiations. The Commerce Ministry stated that it will serve as a framework to facilitate discussions for an ambitious, balanced, and mutually beneficial CEPA. During the ceremony, PM Modi expressed a goal of achieving bilateral trade of $50 billion by 2030.
Prime Minister Carney described it as the expansion of a valued partnership with renewed ambition, focus, and foresight. Following discussions during their bilateral meeting on the margins of the G7 meeting in Kananaskis, Canada, in October 2025, both parties began preparations to finalize the ToR for CEPA negotiations.
Canada is home to over 425,000 Indian students and a vibrant Indian community. Statements from India’s Commerce Ministry have emphasized that “strong and enduring people-to-people ties,” viewed as part of “One Family,” would be further solidified through the conclusion of the India-Canada CEPA.
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