Commerce and Industry Minister Piyush Goyal is currently in Canada with more than 150 Indian business leaders to discuss a potential Free Trade Agreement (FTA).
In a joint press conference with Goyal in Ottawa, Canada’s Trade Minister Maninder Sidhu emphasized the necessity of diversifying Canada’s trading partners to unlock an additional $300 billion in non-US exports.
Goyal stated last week that an FTA with Canada’s $2.5 trillion economy would play to India’s strengths, mentioning he would engage with the Maple Eight pension funds—the eight largest Canadian pension funds—for potential investments in India.
He highlighted critical minerals for electric vehicles and electronics as key areas for collaboration, noting that Canada could assist India in the nuclear energy sector due to its status as the world’s second-largest producer of uranium.
On May 8, India and Canada completed the second round of FTA talks in New Delhi, which took place from May 4 to May 8. A joint statement following the talks revealed discussions had occurred based on the Terms of Reference signed by both countries’ Trade Ministers on March 2.
The statement noted that negotiations were marked by constructive engagement, with both sides reaffirming their commitment to a balanced, ambitious, and mutually beneficial agreement aimed at strengthening bilateral trade and economic relations.
Extensive discussions covered various topics including Trade in Goods, Trade in Services, Intellectual Property, Rules of Origin, Sanitary and Phytosanitary Measures, and Technical Barriers to Trade, with both parties agreeing to continue negotiations in a “constructive and cooperative spirit.”
Sources within the government previously indicated that India seeks to benefit from complementary trade with Canada, as the two nations do not compete in most sectors. Future negotiations are expected to address trade in goods and services, along with issues like market access, labor mobility, and education.
Canada has a market population of 41.65 million (2025) and a GDP at PPP of $2.34 trillion. According to DGCI&S data, bilateral trade reached $8.66 billion in FY 2024-25 (with exports 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. Major imports to India from Canada consist of pulses, pearls and semiprecious stones, coal, fertilizers, paper, and petroleum crude.
Notable sectors for India’s services exports to Canada include telecommunications, computer and information services, and various business services. These sectors show considerable growth potential and are projected to expand further after the CEPA’s conclusion.
On March 2, India and Canada initiated negotiations for the Comprehensive Economic Partnership Agreement (CEPA) in New Delhi, with the intent to complete it soon.
The Terms of Reference (ToR) for the CEPA were signed by the trade ministers from both countries 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 format, frequency, and approach for the CEPA negotiations. The Commerce Ministry stated it would serve as a guide to facilitate the conclusion of an ambitious, balanced, and mutually beneficial CEPA.
During the ceremony, PM Modi underscored the goal of achieving $50 billion in bilateral trade by 2030. PM Carney described it as the expansion of a valued partnership infused with new ambition, focus, and foresight.
Following the leaders’ statement during their bilateral meeting at the G7 summit in Kananaskis, Canada, in October 2025, both sides began working to finalize the ToR for the India-Canada CEPA negotiations.
Canada hosts over 425,000 Indian students and has a strong Indian community. India’s Commerce Ministry’s statement noted that “strong and enduring people-to-people ties,” forming “One Family,” will be further strengthened by the completion of the India-Canada CEPA.
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