India, Canada push to conclude trade pact this year, deepen strategic ties

India and Canada on Tuesday agreed to accelerate efforts to conclude negotiations for a Comprehensive Economic Partnership Agreement (CEPA) in 2026, while expanding cooperation across trade, energy, defence, technology and talent mobility.

The commitment came during a meeting between Prime Minister Narendra Modi and his Canadian counterpart Mark Carney on the sidelines of the G7 Summit in Evian, France. Following the meeting, Modi posted on X: “It was a delight to meet Prime Minister Carney on the sidelines of the Evian G7 Summit. In less than a year, it is our fourth meeting, indicating our commitment to strong India-Canada ties. We reviewed the full range of relations between our nations, notably the ground covered since we last met.”

According to the press statement by the ministry of external affairs, the two leaders welcomed the positive momentum in bilateral relations and reviewed progress made since Carney's visit to India in March. Reaffirming their commitment to a forward-looking strategic partnership, they highlighted the complementarities between the Indian and Canadian economies and stressed the importance of resilient and reliable supply chains for global energy and food security.

Both sides also welcomed the growing pace of high-level exchanges. The leaders noted the recent visit of commerce and industry minister Piyush Goyal to Canada and said they looked forward to a Canadian trade mission to India later this year, to be led by Canada's minister of international trade.

The meeting also focused on strengthening institutional engagement between the two countries. The leaders welcomed recent meetings of the Joint Science and Technology Committee and the Consular Dialogue, while looking forward to future dialogues in defence, finance and migration.

The two prime ministers noted ongoing collaboration under the Canada-India Talent and Innovation Strategy, including initiatives aimed at strengthening skill development, innovation partnerships and educational cooperation between institutions in both countries. Modi also expressed support for Canada's bid to become a Dialogue Partner of the Indian Ocean Rim Association (IORA).

The leaders announced the establishment of "Raisina Americas", a new platform intended to deepen dialogue, exchanges and cooperation between stakeholders from the two countries and the wider region.

Modi thanked Carney for inviting him to visit Canada later this year. Both sides agreed to remain engaged through diplomatic channels to finalise mutually convenient dates for the visit.

During the visit, India and Canada also reaffirmed their ambition to substantially expand bilateral trade and investment, with discussions spanning energy, critical minerals, digital technologies, agri-food, education and advanced manufacturing. Canadian Trade Minister Maninder Sidhu subsequently announced plans to lead a trade mission to India later this year, underscoring the growing economic momentum between the two countries.

India and Canada's merchandise trade has grown steadily, with two-way trade reaching $13.6 billion in 2025. Canadian exports to India stood at $3.9 billion, led by vegetables, mineral fuels and oils, and wood pulp, while imports from India totalled US$9.7 billion, driven by precious stones and metals, machinery and pharmaceutical products.

During Goyal's visit to Canada in May, the two countries reaffirmed their commitment to substantially expand bilateral commerce and work towards doubling two-way trade to $70 billion a year by 2030, alongside efforts to conclude the proposed CEPA by the end of 2026.