India, Canada Push for FTA by G20 as Bilateral Ties Gain Fresh Momentum

Evian (France), June 2026: India and Canada have signalled a strong commitment to rebuilding and expanding bilateral ties, with both countries making significant progress towards concluding a long-awaited Free Trade Agreement (FTA) by the end of the year. The development came as Canadian Prime Minister Mark Carney met Prime Minister Narendra Modi on the sidelines of the G7 Summit in France, where both leaders underscored the importance of deepening economic engagement.

Speaking after the bilateral meeting, Carney expressed optimism over the pace of negotiations, stating that discussions on the trade pact were moving forward steadily. He highlighted the growing cooperation between the two nations across trade, investment, education, and cultural exchanges, reflecting a renewed spirit of partnership.

Referring to his interactions with Prime Minister Modi over the past year, Carney remarked that the relationship had reached new heights and that both sides shared an ambitious vision for the future. He also extended an invitation to Modi to visit Canada, emphasizing the value of continued high-level engagement between the two countries.

A key focus of the discussions was the completion of the FTA by the time of the G20 Summit. Carney noted that both governments had set a clear timeline and that negotiating teams were working with that objective in mind. He said the growing exchanges between universities, businesses, and communities in both countries had revealed vast untapped opportunities for collaboration.

The Canadian leader pointed to increasing business engagement as evidence of strengthening ties. India recently sent what Canadian officials described as the largest-ever Indian business delegation to Canada, while a major Canadian delegation is expected to travel to India in the near future. According to Carney, these exchanges are laying the groundwork for broader economic cooperation and increased trade flows.

Both countries have set a target of doubling bilateral trade by the end of the decade, although Carney suggested that the partnership could potentially surpass those expectations. He stressed that sectors such as energy, agri-food, technology, and education offer immense scope for expansion and could become pillars of future cooperation.

Last month, Carney had described the India-Canada trade negotiations as a potential “game changer” for Canadian workers and businesses. Following his meeting with India’s Commerce and Industry Minister Piyush Goyal in Ottawa, he had noted that the agreement could unlock access to one of the world’s largest and fastest-growing markets.

Goyal, who led the Indian business delegation to Canada, echoed the optimism surrounding the negotiations. He stated that Carney’s recent visit to India had infused fresh momentum and renewed confidence into bilateral relations. The minister said both sides had engaged in forward-looking discussions aimed at expanding cooperation across multiple sectors.

The proposed trade pact, officially known as the India-Canada Comprehensive Economic Partnership Agreement (CEPA), has been under negotiation for several years. Canadian International Trade Minister Maninder Sidhu indicated that the process was moving swiftly, noting that two rounds of negotiations had already been completed.

Sidhu emphasized Canada’s broader strategy of diversifying its trade relationships and reducing dependence on the United States by tapping into new export markets. He said Ottawa sees India as a crucial partner in achieving this goal.

As diplomatic engagement intensifies and trade negotiations gather pace, both India and Canada appear determined to usher in a new chapter in their relationship—one driven by economic cooperation, strategic alignment, and shared growth ambitions.