The second round of FTA talks between India and Canada began in New Delhi on May 4 and is scheduled to run until May 8. Government sources indicated that India expects to benefit from trade complementarity with Canada, as the two countries do not compete across most sectors. Negotiations are likely to cover trade in goods and services, along with other mutually agreed policy areas such as market access, labour mobility, and education.
Canada represents a market of 41.65 million people (2025) and an economy worth $2.34 trillion in GDP (PPP terms). As per DGCI&S data, bilateral trade stood at $8.66 billion in FY25, with exports at $4.22 billion and imports at $4.44 billion.
Key Indian exports to Canada include pharmaceuticals, iron and steel, seafood, cotton garments, electronic goods, and chemicals. Imports from Canada include pulses, pearls and semi-precious stones, coal, fertilisers, paper, and crude oil. In services, India’s key exports include telecommunications, computer and information services, and other business services—segments seen as having strong growth potential post-CEPA.
Commerce and Industry Minister Piyush Goyal is likely to lead a trade delegation to Canada later this month, accompanied by industry representatives. On March 2, India and Canada formally launched negotiations for the Comprehensive Economic Partnership Agreement (CEPA) in New Delhi, with the aim of concluding it at the earliest.
The Terms of Reference (ToR) for the CEPA were signed by Piyush Goyal and Canada’s International Trade Minister Maninder Sidhu, and exchanged in the presence of Prime Minister Narendra Modi and his Canadian counterpart Mark Carney at Hyderabad House. The ToR outlines the structure, frequency, and approach for the negotiations, and is intended to guide efforts toward an ambitious, balanced, and mutually beneficial agreement.
During the ceremony, Prime Minister Modi highlighted a bilateral trade target of $50 billion by 2030, while Prime Minister Carney described the agreement as an expansion of a valued partnership with renewed ambition and focus. The ToR follows up on discussions held during their bilateral meeting on the sidelines of the G7 summit in Kananaskis, Canada, in October 2025.
Canada is home to over 4.25 lakh Indian students and a large Indian diaspora. The Commerce Ministry has said that strong people-to-people ties—described as “One Family”—are expected to deepen further with the conclusion of the CEPA.
