India and Canada have launched the second round of negotiations for the proposed Comprehensive Economic Partnership Agreement (CEPA), aiming to finalise the free trade agreement (FTA) by the end of 2026. The move reflects renewed momentum in bilateral relations and a shared ambition to significantly expand trade and investment ties between the two countries.
The five-day negotiation round began in New Delhi on Monday, with officials from both nations discussing key areas of trade cooperation. The talks follow the first phase of negotiations held in March this year after Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney met in New Delhi, signalling a reset in diplomatic and economic engagement.
According to a joint statement issued after the leaders’ meeting, India and Canada see the CEPA as a long-term economic framework that can strengthen strategic cooperation and support business growth. Both countries have set a target of increasing bilateral trade to CAD 70 billion, approximately USD 50 billion, by 2030.
To further deepen economic collaboration, Commerce and Industry Minister Piyush Goyal is expected to visit Canada later this month along with a business delegation.
Bilateral goods trade between India and Canada reached USD 8.66 billion during 2024-25. India’s exports stood at USD 4.22 billion and included pharmaceutical products, engineering goods, electronics, machinery parts, gems and jewellery, textiles, seafood, organic chemicals, and auto components.
Meanwhile, India imported pulses, fertilisers, mineral fuels, wood pulp, machinery, aircraft parts, paper products, diamonds, and metal scrap from Canada.
The services sector also remains an important pillar of the economic partnership. India’s major services exports to Canada include telecommunications, computer services, and other business-related services.
The ongoing CEPA negotiations are expected to create new opportunities for businesses, improve market access, and strengthen economic ties between the two countries over the coming years.
