CEPA Talks Resume As India, Canada Target Faster Trade Deal
India and Canada have stepped up efforts to finalize a long-awaited trade deal, launching a fresh round of negotiations in New Delhi as both sides push to conclude an agreement by the end of the year.
The five-day talks mark the second round of discussions on the proposed Comprehensive Economic Partnership Agreement (CEPA), a key framework aimed at deepening economic ties between the two countries.
The negotiations come ahead of Commerce and Industry Minister Piyush Goyal’s planned visit to Canada later this month, which is expected to further accelerate momentum in bilateral engagement.
The CEPA discussions gained traction earlier this year following a meeting in New Delhi between Prime Minister Narendra Modi and his Canadian counterpart Mark Carney. That meeting marked a turning point in relations, which had deteriorated under former Prime Minister Justin Trudeau. Ties between the two countries had previously hit a low point amid concerns in India over the activities of Sikh extremist groups in Canada.
During their meeting in March, Modi and Carney agreed to set a year-end deadline for concluding the CEPA negotiations and to expand cooperation in areas such as energy and critical minerals. The agreement is expected to serve as a long-term economic anchor for the partnership and support a shared goal of significantly increasing bilateral trade by 2030.
Trade between the two countries remains relatively modest but has shown steady potential for growth. Bilateral trade in goods stood at $8.66 billion in 2024–25, with India exporting goods worth $4.22 billion to Canada. Key Indian exports include pharmaceutical products, machinery and mechanical appliances, iron and steel articles, electronic goods, organic chemicals, jewellery, garments and textiles, seafood, engineering goods, and auto components.
India’s imports from Canada are led by pulses, fertilizers, mineral fuels, wood pulp, gems and precious stones, aircraft parts, machinery, and metal scrap. In the services sector, India’s information technology industry continues to play a major role in exports to Canada.
With both governments signaling urgency and political backing at the highest level, the ongoing negotiations are seen as a critical step toward unlocking greater trade flows and strengthening economic ties between the two countries.
