India and Canada have formally agreed to resume negotiations on a long-pending Free Trade Agreement (FTA), also referred to as the Comprehensive Economic Partnership Agreement (CEPA). The decision was announced by Commerce and Industry Minister Piyush Goyal following the 7th India-Canada Ministerial Dialogue on Trade and Investment held in New Delhi.
The renewed talks aim to significantly expand bilateral economic engagement, with both sides setting an ambitious target of raising two-way trade to USD 50 billion by 2030. Minister Goyal described the agreement as a “high-ambition CEPA” that reflects the trust and complementary strengths between the two nations. He emphasized that India and Canada are “natural allies” whose cooperation can act as a force multiplier for businesses and investors.
Canadian Minister of International Trade Maninder Sidhu joined Goyal in reaffirming the commitment to deepen economic ties. The ministers highlighted opportunities in critical minerals, technology transfer, and sustainable development, noting that Canada’s expertise in resource management and India’s growing industrial demand could create mutually beneficial partnerships.
The announcement comes after a period of strained diplomatic relations between the two countries, which had stalled trade talks in recent years. The resumption of negotiations signals a thaw in ties and a renewed focus on economic collaboration. Both governments underscored that the pact would provide greater confidence to investors and businesses, while also opening new avenues for cooperation in sectors such as agriculture, energy, education, and innovation.
In addition to trade negotiations, India and Canada agreed to revive the India-Canada CEO Forum in 2026, which will serve as a platform for business leaders to shape sector-specific strategies and accelerate progress on CEPA. Canadian pension funds, which have already invested significantly in India, are expected to play a key role in strengthening financial flows and infrastructure development.
Officials noted that the FTA discussions will be conducted with a clear roadmap, ensuring measurable progress in the coming years. The move is seen as part of India’s broader strategy to expand its global trade partnerships and Canada’s effort to diversify its economic ties beyond traditional markets.
With negotiations set to restart, industry experts anticipate that the agreement could reshape bilateral trade relations, offering new opportunities for businesses and reinforcing the long-term partnership between the two democracies.
