Reviving Prosperity: India and Canada Reignite Trade Talks, Set Ambitious $50 Billion Target by 2030!
India and Canada have officially relaunched negotiations for a comprehensive economic partnership agreement (CEPA), aiming to boost bilateral trade to $50 billion by 2030. This announcement came during Canadian Prime Minister Mark Carney’s initial official visit to India, where both nations finalized the terms of reference for the proposed deal. According to a joint statement from Prime Minister Narendra Modi and Carney, the objective is to complete negotiations by the end of 2026.
Positioned as a cornerstone of an expansive strategic partnership framework, the CEPA is expected to encompass trade in goods and services, among other agreed areas. A newly revived ministerial dialogue on trade and investment will guide the negotiations, supported by reciprocal ministerial visits and business delegations over the coming months, as noted in the joint statement.
Moreover, the two countries expressed their intent to enhance cooperation in various sectors, including energy, critical minerals, clean technology, digital innovation, and talent mobility. A significant step forward includes a C$2.6 billion long-term commercial agreement between Canada’s Cameco Corporation and India’s Department of Atomic Energy for the supply of uranium ore concentrates.
Both leaders also emphasized the potential for expanding bilateral energy trade in liquefied natural gas (LNG), liquefied petroleum gas (LPG), crude oil, and refined petroleum products, with Canada aiming to establish itself as a long-term LNG supplier to the Indo-Pacific region.
A memorandum of understanding on critical minerals was signed to fortify clean energy and advanced manufacturing supply chains, while Canada’s active participation in the International Solar Alliance and the Global Biofuels Alliance was also supported by both sides. The visit culminated in a trilateral memorandum of understanding on technology and innovation among India, Canada, and Australia, reflecting their growing cooperation in emerging technologies, including artificial intelligence and digital infrastructure. In addition, separate agreements on renewable energy and cultural collaboration were finalized.
On the topic of talent mobility, an agreement between India’s All India Council for Technical Education (AICTE) and Canada’s Mitacs will facilitate up to 300 fully-funded research internships annually for Indian students starting in 2027. Leaders also recognized 24 institutional partnerships that span fields like AI, healthcare, and agriculture.
In defense, the two nations have committed to establishing an India-Canada defense dialogue while enhancing cooperation on counter-terrorism, cybersecurity, and organized crime. This renewed engagement marks a significant shift after relations soured in 2023 when accusations arose regarding alleged Indian involvement in the killing of a Khalistani separatist, which New Delhi vehemently denied. This incident led to diplomatic expulsions, a halt in trade negotiations, and a temporary suspension of visa services, although merchandise trade continued.
Recent momentum to rebuild ties was observed after Modi and Carney agreed to restart negotiations at the G7 Summit in Kananaskis in June. Following this, visits from Canadian ministers have helped restore engagement between the two countries.
Agneshwar Sen, a trade policy leader at EY India, noted that this formal resumption of CEPA negotiations arrives at a strategically advantageous time. He stated, “A forward-looking CEPA will provide predictability for investors, facilitate talent mobility, and deepen collaboration in critical minerals while supporting clean energy development.” For businesses, this restart is expected to enhance confidence by establishing reliable value chains and open markets, particularly given the presence of a significant Indian diaspora in Canada.
India’s trade relationship with Canada is currently slightly in deficit, with exports amounting to $4.22 billion and imports at $4.44 billion for FY25. Notably, exports have risen from $3.84 billion in FY24, while imports have decreased from $4.55 billion.
Tags: India-Canada relations, CEPA negotiations, economic partnership, trade agreement, bilateral trade, Mark Carney, Narendra Modi, energy cooperation.
Original Source: https://www.livemint.com/news/india-canada-trade-talks-pm-modi-mark-carney-india-canada-cepa-11772456666658.html
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Publish Date: 2026-03-02 19:59:00
