India, Canada Push to Finalise Trade Deal Amid Renewed Economic Engagement

Ottawa, May 2025 : India and Canada have intensified efforts to strengthen bilateral economic ties, with both countries aiming to conclude a major trade agreement this year while significantly expanding commercial cooperation in the coming decade.

Canada’s Minister of International Trade, Maninder Sidhu, said on Monday that discussions between the two nations were progressing positively and reflected a renewed commitment to deeper economic engagement. He noted that India’s visit to Canada with one of the largest business delegations in history underscored the growing momentum in bilateral relations.

Addressing a joint media interaction alongside India’s Commerce and Industry Minister Piyush Goyal, Sidhu said there was considerable enthusiasm across Canada to enhance trade and investment ties with India. He added that business communities, chambers of commerce and industry stakeholders across the country were increasingly looking at India as a key economic partner.

Sidhu described Goyal’s visit as “timely and important,” especially in the backdrop of ongoing negotiations on the Comprehensive Economic Partnership Agreement (CEPA) and the recently announced CAD 2.6 billion uranium agreement signed in March.

He said both countries had already completed two rounds of negotiations and would continue intensive discussions over the next 48 hours through meetings involving chief negotiators from both sides. Sidhu expressed confidence that the two nations were working with urgency and determination to conclude the trade deal within the current year.

Highlighting the close coordination between the two governments, Sidhu remarked that constant communication and “WhatsApp diplomacy” between officials and ministers had helped maintain momentum in the negotiations.

The Canadian minister also announced plans to lead a major Canadian trade mission to India later this year. He said the initiative would mirror the energy and enthusiasm brought by Minister Goyal’s delegation and further deepen economic cooperation between the two countries.

Piyush Goyal, while addressing the media, pointed to the recent visit of Canadian Prime Minister Mark Carney to India as a turning point in bilateral relations. He noted that the visit, which took place a few months ago, was the first by a Canadian Prime Minister to India in eight years and had significantly transformed the outlook of both nations towards each other.

According to Goyal, the high-level political engagement has set the stage for a “complete overhaul” of India-Canada relations, opening new pathways for collaboration in trade, investment and strategic cooperation.

He said the leadership of both countries had adopted a mission-oriented approach and tasked their respective ministers and negotiators with finalising a comprehensive free trade agreement before the end of the year, or even earlier if possible.

Goyal further highlighted the ambitious target set by both governments to increase bilateral trade from the current level of around USD 17 billion to USD 50 billion by 2030. He said achieving this goal would create substantial business opportunities and generate long-term benefits for industries and citizens in both countries.

Describing India and Canada as two influential democratic economies, Goyal said the partnership would play an increasingly important role not only in promoting mutual prosperity but also in contributing to global economic stability, peace and security.

He emphasised that the strengthening of India-Canada ties reflects a shared vision for inclusive growth, innovation and international cooperation. The minister added that sectors such as clean energy, critical minerals, technology, agriculture and advanced manufacturing could emerge as major pillars of the evolving partnership.

The renewed diplomatic and economic engagement comes at a time when both nations are seeking to diversify trade partnerships and build resilient supply chains amid changing global economic conditions.

Team Maverick.