Stating that an FTA with Canada’s $2.5 trillion economy will complement India’s strengths, the Minister said he will speak to Maple Eight pension funds, the 8 largest pension funds in Canada, about possible investment in India.
Describing critical minerals for EVs and electronics as another domain where Canada could be a partner for India, he said that the North American country can also help India in the nuclear energy sector, as it is the world’s second-largest uranium producer.
On the current fall in the value of the Indian Rupee, the Minister said that the government doesn’t interfere in the exchange rate, which is a matter of market forces and depends on several global factors. Noting that the value of the rupee has appreciated in the past few days, he added that the government is undertaking measures to promote exports as well as engage in import substitution.
On May 8, India and Canada concluded the second round of talks for an FTA in New Delhi, which was held from May 4 to 8. A joint statement issued on the conclusion of the round said that Discussions were held in accordance with the Terms of Reference signed by Trade Ministers of both countries on 2nd March. Noting that negotiations witnessed constructive and productive engagement between the two sides, the statement said that both sides reaffirmed their shared commitment to advance a balanced, ambitious, and mutually beneficial agreement aimed at strengthening bilateral trade and economic ties.
Detailed discussions were held on Trade in Goods, Trade in Services, Intellectual Property, Rules of Origin, Sanitary and Phytosanitary Measures, and Technical Barriers to Trade, even as both sides agreed to continue negotiations in a “constructive and cooperative spirit.” The next round of discussions is scheduled in July 2026 in Ottawa, Canada, with intersessional engagements to continue in the interim.
Government sources had earlier indicated that India looks to benefit from complementarity in trade with Canada, as both nations don’t compete in most sectors. Negotiations ahead are likely to cover trade in goods, services, and other mutually agreed policy areas, along with issues like market access, labour mobility, and education.
Also Read: China coal mine gas explosion kills 82, traps dozens: State media
Canada represents a market of 41.65 million people (2025) and $2.34 trillion in terms of GDP at PPP. As per DGCI&S data, bilateral trade stood at $8.66 billion in FY 2024-25 (Exports worth $4.22 billion and Imports worth $4.44 billion).
Key exports from India to Canada include drugs & pharmaceuticals, iron & steel, seafood, cotton garments, electronic goods, and chemicals, among others. Key imports of India from Canada include pulses, pearls &
semiprecious stones, coal, fertiliser, paper, and petroleum crude. Key sectors of India’s services exports to Canada include telecommunications, computer and information services, and other business services. These sectors hold significant future growth potential and are expected to expand further following the conclusion of the CEPA.
Commerce and Industry Minister Piyush Goyal is likely to lead India’s trade delegation to Canada later this month, where he will also be accompanied by a business delegation. On March 2, India and Canada launched negotiations for the Comprehensive Economic Partnership Agreement (CEPA) in New Delhi with an aim to finalise it soon.
The Terms of Reference (ToR) for the India-Canada Comprehensive Economic Partnership Agreement (CEPA) were signed by India’s Commerce and Industry Minister Piyush Goyal and Canada’s Minister of International Trade Maninder Sidhu and exchanged in the presence of India’s Prime Minister Narendra Modi & Canada’s Prime Minister Mark Carney at Hyderabad House in New Delhi.
The ToR of negotiations will provide the format, frequency, and approach to the CEPA negotiations. In a statement, the Commerce Ministry had said that it will serve as a guide to facilitate negotiations to conclude an ambitious, balanced and mutually beneficial CEPA. During the ceremony, PM Modi had highlighted that the goal for bilateral trade is $50 billion by 2030.
Canada’s PM Carney termed it the expansion of a valued partnership with new ambition, focus, and foresight. As a follow-up to the leaders’ statement during their bilateral meeting on the margins of the G7 meeting in Kananaskis, Canada, in October 2025, both sides started working towards finalising the ToR for the negotiations of India-Canada CEPA.
Canada is home to over 4.25 lakh Indian students and a strong Indian community. India’s Commerce Ministry’s statement had indicated that “strong and enduring people-to-people ties” which constitute “One Family” would be further reinforced by the conclusion of the India- Canada CEPA.
Also Read: Pak Army chief Munir and Iran FM Araghchi hold talks in Tehran on West Asia conflict
