India and Canada have agreed to restart negotiations on a Free Trade Agreement, with the goal of raising two-way trade to $50 billion by 2030, Commerce and Industry Minister Piyush Goyal said on Monday.
Goyal described the proposed Comprehensive Economic Partnership Agreement as a strategic pact that reflects renewed trust between the two countries and would provide confidence to investors and businesses on both sides.
Goyal said both countries are aligned in their economic priorities and do not compete with each other, which makes a high-ambition CEPA achievable. He noted that the strengths of India and Canada can act as a force multiplier for trade and investment.
He also highlighted opportunities in critical minerals, processing technologies, supply chain diversification, and cooperation in nuclear energy, including India’s long-standing engagement with Canada on uranium supplies.
Canada had paused FTA negotiations in 2023, during a period of strained diplomatic ties following allegations made by then Prime Minister Justin Trudeau about Indian involvement in the killing of Hardeep Singh Nijjar.
India rejected the accusation as absurd. Before the pause, both countries had relaunched negotiations in March 2022 for an interim Early Progress Trade Agreement, and more than six rounds of discussions had been held.
Trade flows between the two countries have remained steady. India’s exports to Canada rose 9.8% to $4.22 billion in 2024–25, while imports fell 2.33% to $4.44 billion. Bilateral trade in goods and services stood at $18.38 billion in 2023.
The renewed engagement has followed Prime Minister Narendra Modi’s meeting with Canadian PM Mark Carney on the sidelines of the G7 summit in Kananaskis in June.
Canada hosts a large Indian community, with about 2.9 million people of Indian origin and more than 427,000 Indian students living and studying in the country.
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