THEBUSINESSBYTES BUREAU

NEW DELHI, MARCH 2, 2026

India and Canada on Monday formally launched negotiations for a Comprehensive Economic Partnership Agreement (CEPA) after signing the Terms of Reference (ToR) at Hyderabad House, signalling a renewed push to deepen economic ties and unlock large trade potential between the two economies.

The ToR was signed by Commerce and Industry Minister Piyush Goyal and Canada’s Minister of International Trade Maninder Sidhu and exchanged in the presence of Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney, setting the framework for the structure, frequency and modalities of the negotiations. The agreement is expected to be concluded at the earliest, with both sides committing to an ambitious, balanced and mutually beneficial pact.

Prime Minister Modi underscored that India and Canada have set a target of achieving $50 billion in bilateral trade by 2030, emphasising that the CEPA would help unlock the full potential of economic cooperation across sectors. Prime Minister Carney described the initiative as an expansion of a valued partnership marked by “new ambition, focus and foresight,” reflecting the confidence of both countries in shaping their economic future.

The CEPA negotiations will cover trade in goods and services along with other mutually agreed policy areas, providing a comprehensive roadmap to enhance market access, reduce trade barriers and boost investment flows. The move follows the leaders’ discussions on the margins of the G7 meeting in Kananaskis in October 2025, after which both countries accelerated work on finalising the ToR.

Canada, with a population of 41.65 million and a GDP of $2.34 trillion at PPP, represents a significant market for Indian exporters. Bilateral trade currently stands at $8.66 billion in FY 2024-25, with India exporting $4.22 billion worth of goods and importing $4.44 billion. Key Indian exports include pharmaceuticals, iron and steel, seafood, cotton garments, electronics and chemicals, while imports from Canada are led by pulses, coal, fertilisers, crude petroleum, paper and precious stones.

Services trade is also expected to gain momentum, particularly in telecommunications, computer and information services and business services, which hold strong growth potential post-CEPA. The agreement is likely to provide greater mobility for professionals and enhance digital and technology partnerships.

Beyond trade, the pact is expected to reinforce strong people-to-people ties, with Canada hosting over 425,000 Indian students and a vibrant Indian diaspora. Officials said these “One Family” linkages would gain further strength as economic integration deepens through the proposed CEPA, positioning both countries for a more robust and future-ready partnership.