India and Canada have formally relaunched negotiations for a Comprehensive Economic Partnership Agreement (CEPA), with both sides setting an ambitious goal to expand bilateral trade to USD 50 billion by 2030, marking a significant reset and deepening of economic ties between the two democracies.

Key Highlights

• India, Canada relaunch CEPA talks, target USD 50 billion trade by 2030
• Modi and Carney signal diplomatic reset, deepen strategic and economic partnership

The Terms of Reference (ToR) for the CEPA were signed in New Delhi at Hyderabad House by India’s Commerce and Industry Minister Piyush Goyal and Canada’s Minister of International Trade Maninder Sidhu, in the presence of Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney.

During the joint press conference, PM Modi reiterated the target and the commitment to the CEPA. He said, “Our goal is to reach $50 billion in trade by 2030. Unlocking the full potential of economic cooperation is our priority. Therefore, we have decided to finalise the CEPA soon,” emphasizing the urgency of concluding the agreement. Canadian PM Mark Carney described the CEPA process as the “expansion of a valued partnership with new ambition, focus and foresight,” highlighting a forward-looking approach in bilateral ties.

Major Agreements and Sectoral Cooperation

Beyond the headline trade pact, the India–Canada summit produced several strategic agreements across key sectors. The leaders agreed to deepen collaboration in areas including energy, critical minerals, clean technology, digital innovation, and talent mobility. In line with this, a C$2.6 billion (US$2.1 billion) long-term contract was signed for Canadian uranium ore supplies to India’s Department of Atomic Energy. India and Canada also signed a memorandum of understanding (MoU) on critical minerals, intended to bolster secure supply chains for components of clean energy and advanced manufacturing. Additional deals were inked on technology and innovation: notably a trilateral MoU (India–Canada–Australia) on artificial intelligence and digital infrastructure, as well as separate pacts on renewable energy collaboration and cultural exchange. The two governments also agreed to launch an India–Canada defence dialogue and enhance coordination on counter-terrorism, cybersecurity, and related security issues.

In summary, the visit yielded a host of sectoral agreements, including:

• Uranium supply deal: A 10-year, C$2.6 billion agreement for 22 million pounds of Canadian uranium ore to support India’s nuclear energy needs.
• Critical minerals partnership: A joint MoU to promote exploration, processing and reliable supply chains of minerals crucial for clean energy technologies.
• Technology and innovation MoUs: Collaboration on AI and digital infrastructure (via a trilateral India–Canada–Australia pact), plus renewable energy cooperation and cultural initiatives.
• Security and defence: Launch of a formal defence dialogue and expanded cooperation on counter-terrorism, cyber-security and military exchanges.

These agreements complement the CEPA framework by opening new channels for investment, skills and technology exchange between India and Canada.

Trade Profile and Economic Context

Despite the ambitious target, current trade between India and Canada remains relatively modest. Official data show total bilateral trade was about US$8.66 billion in FY2024–25 (Indian exports ≈$4.22 billion; imports ≈$4.44 billion). For perspective, Canada has roughly 41.65 million people and a GDP of US$2.34 trillion (PPP), underlining the untapped potential. Key Indian exports to Canada include drugs and pharmaceuticals, iron & steel products, seafood, cotton garments, electronic goods and chemicals, while India’s main imports from Canada are pulses, pearls and other semi-precious stones, coal, fertilizer, paper products and petroleum crude oil.

These figures suggest room for significant growth. India’s services exports to Canada (in IT, telecom and business services) are also poised to rise once market barriers are reduced. The two countries share strong people-to-people links: over 425,000 Indian students study in Canada and a vibrant Indian diaspora is established there. Leaders highlighted existing investment ties as a foundation: PM Modi noted that Canadian pension funds (with about US$2 trillion in assets) have already invested roughly US$100 billion in India, reflecting confidence in India’s economy.

Also Read: India & Canada Near $2.8 Bn Uranium Deal as Trade Talks Progress

Diplomatic Reset and Outlook

The renewed push on trade follows a rapid diplomatic reset. Relations had hit a low in 2023 when Canada’s then-PM Justin Trudeau alleged India’s involvement in the killing of a Sikh separatist in Canada—a charge New Delhi “categorically and vehemently” denied. This dispute led to cancelled visits and a pause in trade talks. The impasse began to thaw after Modi and Carney met on the sidelines of the G7 summit in June 2025, where they agreed to work together on restoring ties. According to Indian officials, the resumption of high-level dialogue has now translated into concrete outcomes, marking an “important inflection point” in bilateral relations.

Looking ahead, both leaders emphasized sustaining momentum. They committed to conclude CEPA negotiations by the end of 2026. At the press conference, PM Modi observed that reaching the $50 billion trade goal would “create new investment and employment opportunities in both countries”. Prime Minister Carney called the spate of agreements “the beginning of a new, prosperous relationship” that can yield generational benefits for businesses and workers on both sides. With the path ahead now charted, India and Canada appear set to expand economic ties from their current baseline to meet the ambitious trade target by 2030.