India and Canada have commenced the second round of discussions for a bilateral free trade agreement, aiming to finalize the deal by the end of the year. The five-day negotiations in New Delhi precede the upcoming visit of Commerce and Industry Minister Piyush Goyal to Canada later this month to enhance economic ties, with a target to boost bilateral trade to $50 billion by 2030.
Efforts are underway to expedite the talks for the India-Canada Comprehensive Economic Partnership Agreement (CEPA) to meet the deadline set by the Prime Ministers of both countries earlier this year. The initial round of negotiations for the pact occurred in March after Canadian Prime Minister Mark Carney’s meeting with Indian Prime Minister Narendra Modi in Delhi.
The diplomatic relationship between India and Canada saw significant improvement following Prime Minister Carney’s visit to India, contrasting the strained ties during his predecessor Justin Trudeau’s tenure. The leaders have set a year-end goal to conclude negotiations for the CEPA and have agreed to enhance cooperation in the energy and critical mineral sectors.
India and Canada aim to establish a robust trade framework to support the shared objective of expanding bilateral trade to CAD 70 billion/Rs 4.65 lakh crore by 2030. The current bilateral trade in goods between the two countries stood at $8.66 billion in 2024-25, with India’s exports to Canada reaching $4.22 billion, including various products like pharmaceuticals, machinery parts, electronic goods, and textiles.
India’s imports from Canada consist of items such as pulses, fertilizers, mineral fuels, and aircraft parts. Notably, India’s IT sector plays a significant role in services exports to Canada, highlighting the diverse nature of the bilateral trade relationship.
