India and Canada have agreed to restart negotiations on a Free Trade Agreement (FTA), aiming to lift bilateral trade to USD 50 billion by 2030, Commerce and Industry Minister Piyush Goyal said on Monday.
Speaking at an event, Goyal noted that a full-fledged FTA or Comprehensive Economic Partnership Agreement (CEPA) carries significant strategic value and reflects renewed trust between the two countries. Such an agreement, he said, would boost confidence among investors and businesses on both sides.
“We have agreed to begin negotiations on a high-ambition CEPA and work toward doubling trade by 2030,” he said, adding that India and Canada are “natural allies” whose strengths complement rather than compete with each other.
Goyal highlighted opportunities in critical minerals, processing technologies, and nuclear energy—including ongoing cooperation on uranium supplies—while stressing the potential for diversified and more resilient supply chains.
Canada had frozen FTA talks in 2023 amid diplomatic tensions following then Prime Minister Justin Trudeau’s allegation of an Indian link to the killing of Hardeep Singh Nijjar, a claim India called “absurd.” Prior to that pause, negotiations had resumed in March 2022 under an interim framework known as the Early Progress Trade Agreement (EPTA), with more than six rounds completed.
Trade agreements typically involve substantial reductions in customs duties, liberalised rules for services, and steps to promote investment. India’s exports to Canada rose nearly 10 per cent to USD 4.22 billion in 2024–25, while imports slipped to USD 4.44 billion.
The renewed momentum in the relationship follows Prime Minister Narendra Modi’s meeting with Canadian Prime Minister Mark Carney on the sidelines of the G7 summit at Kananaskis in June. Bilateral trade in goods and services reached USD 18.38 billion in 2023. Canada hosts a 2.9-million-strong Indian diaspora and more than 427,000 Indian students.
