India-Canada Trade Talks Gain Momentum as PM Modi Expected to Visit Canada in December
India and Canada are moving toward a new phase in their economic relationship, with Prime Minister Narendra Modi expected to visit Canada in December as both countries work to conclude a Comprehensive Economic Partnership Agreement (CEPA) by the end of 2026.
Canadian Prime Minister Mark Carney has said he is looking forward to hosting Modiji, while describing the progress in the ongoing trade negotiations as positive. The expected visit could provide an important opportunity for the two sides to review the negotiations and potentially mark a major milestone in their renewed economic engagement.
The latest development follows the completion of the fourth round of CEPA negotiations in New Delhi between September 14 and 19. India and Canada have agreed to maintain the pace of discussions, with the next round scheduled to begin on October 5.
Expanding Trade and Investment Opportunities
The proposed CEPA is aimed at creating a broader framework for trade and investment between the two countries. In 2025, India-Canada trade in goods and services reached $30.4 billion, including $13.6 billion in merchandise trade. Both countries have set an objective of increasing bilateral trade to $70 billion annually by 2030.
For India, greater access to the Canadian market could create opportunities for sectors such as pharmaceuticals, machinery, precious stones and metals and other manufactured products. Canada, meanwhile, is looking to expand its presence in areas including energy, minerals, aerospace and clean technology. A comprehensive trade agreement could also provide businesses with greater predictability and encourage new investment flows between the two economies.
Energy and Critical Minerals Become Key Areas
The trade discussions are taking place alongside growing cooperation in strategic sectors. Energy and critical minerals have emerged as particularly important areas, with Indian companies exploring opportunities in Canada's resource sector.
According to Reuters, discussions include Canadian liquefied natural gas projects, nuclear energy cooperation and potential Indian investment in critical-mineral projects. Companies including Reliance Industries, Mahindra & Mahindra and JSW Group are examining opportunities linked to Canada's critical-mineral sector.
The two countries are also expanding cooperation in technology, artificial intelligence, aerospace and clean energy. These areas could become increasingly significant as both economies seek stronger and more diversified supply chains.
Broader Reset in India-Canada Relations
The renewed focus on trade is part of a broader effort to strengthen India-Canada relations. During Carney's March 2026 visit to India, the two governments agreed to deepen cooperation in trade, energy, critical minerals, technology, AI, talent and defence. The leaders also reaffirmed their commitment to completing the CEPA negotiations by the end of 2026.
Recent diplomatic engagement has continued through official consultations covering economic cooperation, education, science and technology, energy, critical minerals, security and defence. Both sides have reiterated their objective of completing the trade agreement and expanding bilateral trade substantially by 2030.
December Visit Could Add Momentum
With the next round of negotiations beginning in October, the coming weeks will be important for resolving remaining issues and bringing the agreement closer to completion. The expected December visit by Modiji could therefore come at a significant point in the negotiations.
While a final agreement will depend on the completion of negotiations, the pace of engagement in 2026 indicates that trade and economic cooperation have become central to the renewed India-Canada partnership. The proposed CEPA could provide a long-term framework for expanding commerce, investment and cooperation across several emerging sectors.
The MGMM Outlook
India-Canada relations are showing renewed momentum, with the proposed CEPA creating opportunities to deepen trade, investment and cooperation across important sectors. The progress in negotiations, along with the expected December visit of Prime Minister Narendra Modi, reflects the growing focus on strengthening economic engagement. Greater cooperation in pharmaceuticals, manufacturing, energy, critical minerals, technology and clean energy can provide new avenues for businesses and support the broader goal of expanding bilateral trade to $70 billion by 2030.
The emphasis on critical minerals, energy, AI, aerospace and clean technology also gives the partnership a wider strategic dimension beyond traditional trade. With another round of negotiations scheduled for October, continued engagement can help both sides address outstanding issues and work toward completing the CEPA by the end of 2026. The expected December visit could add further momentum to this process and reinforce the importance of a stable, diversified and forward-looking India-Canada economic partnership.
(Sources: Moneycontrol, Times of India, Hindustan Times)
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