India and Canada are set to begin the fifth round of negotiations for their proposed Comprehensive Economic Partnership Agreement, with both sides seeking to accelerate discussions and conclude the trade pact by the end of 2026.
The five-day negotiating round will be held in Ottawa and led by the chief negotiators of both countries. The previous round of talks concluded in New Delhi, with officials now working to maintain momentum and move towards a final agreement.
The negotiations have gained further significance amid an improvement in bilateral relations and renewed efforts to deepen economic cooperation. Prime Minister Narendra Modi is expected to visit Canada later this year, while Canadian Trade Minister Maninder Sidhu is scheduled to travel to New Delhi with a large business delegation.
Modi and Canadian Prime Minister Mark Carney had set an end-of-year target for completing the CEPA negotiations during their meeting in New Delhi. The two leaders also agreed to strengthen cooperation in areas including energy and critical minerals.
Both sides see the proposed agreement as a long-term economic anchor for the bilateral relationship. The countries have set an ambition of expanding bilateral trade to CAD 70 billion by 2030.
Bilateral trade in goods stood at $8.66 billion in 2024-25, with India’s exports to Canada reaching $4.22 billion. India’s major exports include pharmaceutical products, machinery and mechanical appliances, iron and steel articles, electronic goods, organic chemicals, jewellery, gems and precious stones, garments and textiles, seafood, engineering products and auto parts.
Canada is an important source of several commodities for India. Major Indian imports include pulses, fertilisers, mineral fuels, wood pulp, gems and precious stones, aircraft components, machinery parts, and iron and aluminium scrap.
India’s information technology sector remains a major contributor to services exports to Canada, adding another important dimension to the economic relationship.
The renewed trade engagement comes against the backdrop of a broader improvement in India-Canada diplomatic ties. Relations had deteriorated sharply in recent years, but the change in political leadership in Canada has created an opportunity for both countries to rebuild confidence and expand cooperation.
The upcoming round of CEPA negotiations is therefore expected to be closely watched by businesses on both sides. A comprehensive agreement could provide greater market access, strengthen supply chains and create new opportunities across goods and services while giving fresh momentum to the wider India-Canada economic partnership.
