Canada and India advance talks toward new economic pact

International Trade Minister Maninder Sidhu announced that trade negotiations between Canada and India have progressed following a week-long mission to New Delhi, Bengaluru, and Mumbai. The initiative involved representatives from nearly 300 Canadian businesses and exporters, culminating in 34 commercial agreements valued at almost $300 million.

Commercial Agreements and Sector Focus

According to a statement from Sidhu’s office, the new agreements cover a diverse range of industries. These sectors include aerospace, clean technology and energy transitions, information and communications technologies, infrastructure, life sciences, and tourism.

Sidhu emphasized the strategic importance of these connections. "From energy and critical minerals to aerospace, Canadian companies have built valuable connections that will strengthen our long-term partnership with one of the world’s fastest-growing major economies," Sidhu said in a statement. He added, "Canada is ready to be the reliable partner India needs, and the opportunities secured on this mission will deliver lasting benefits for our workers and businesses."

Diplomatic Progress and Upcoming Visits

During the mission, Sidhu met with Indian Industry Minister Piyush Goyal in both New Delhi and Mumbai to accelerate discussions. The two ministers have now met 10 times since May 2025. Both countries are targeting the conclusion of negotiations for a new Comprehensive Economic Partnership Agreement by the end of the year.

Prime Minister Mark Carney confirmed on Thursday that Indian Prime Minister Narendra Modi will visit Toronto and Ottawa on Dec. 11 and 12. This visit is scheduled just ahead of the G20 summit in Miami. Carney and Modi originally launched formal trade negotiations almost a year ago on the sidelines of the G20 leaders’ summit in South Africa.

Historical Context and Trade Goals

Canada and India have been engaged in trade talks since 2010. However, those negotiations were suspended in 2023 after the federal government accused New Delhi of playing a role in the assassination of a Canadian Sikh activist in Surrey, B.C. Carney, who made resetting relations with India a priority after becoming prime minister in 2025, visited Mumbai and New Delhi in March. This marked the first visit by a Canadian prime minister to India in eight years.

That March trip resulted in the signing of several agreements, including a $2.6-billion deal to supply India with about 22 million pounds of uranium for energy generation, as well as 10 commercial agreements worth more than $5.5 billion. In May, Goyal stated that Carney’s visit "paved the way for a complete overhaul of the Canada-India relationship."

Why it matters

The Liberal government has established specific economic targets to expand trade relationships. The administration aims to double non-U.S. exports over the next decade and has set a goal of doubling two-way trade with India to $70 billion annually by 2030. In 2025, two-way goods and services trade between Canada and India amounted to $30.4 billion. The recent agreements and diplomatic engagements represent steps toward meeting these stated objectives.

---

Sources

• bnnbloomberg.ca: Canada, India close to new trade pact: trade minister
• ctvnews.ca: Canada, India close to new trade pact: trade minister

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.