India and Canada have resumed negotiations on a proposed Comprehensive Economic Partnership Agreement (CEPA), with both countries working toward completing the trade pact by the end of 2026. The latest round of discussions began in New Delhi on September 14 and is scheduled to continue for five days.
Negotiators are expected to address several key areas during the fourth round, including trade in goods and services, rules of origin and technical barriers. The talks build on the previous round, which took place in Ottawa in July, as the two nations work to strengthen their economic relationship.
The year-end deadline was established during a meeting between Indian Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney in New Delhi in March. During that meeting, the leaders also agreed to expand cooperation in areas such as energy and critical minerals.
Both governments have described a comprehensive trade agreement as an important foundation for their broader economic partnership. They have set a shared objective of increasing bilateral trade to $70 billion by 2030, according to a joint statement issued following the leaders’ meeting.
Current merchandise trade between the two countries remains significantly below that target. India and Canada recorded $8.66 billion in goods trade during the 2024-25 financial year, with Indian exports to Canada reaching $4.22 billion.
India’s shipments to the Canadian market cover a broad range of products. Pharmaceuticals, machinery and mechanical equipment, iron and steel products, electronics, organic chemicals, jewelry, precious and semiprecious stones, textiles, seafood, engineering products and automobile components are among the major exports.
Canada, meanwhile, supplies India with products including pulses, fertilizers, mineral fuels, wood pulp, precious and semiprecious stones, aircraft components, machinery and metal scrap.
Services are another important part of the economic relationship. India’s information technology industry is a major contributor to the country’s services exports to Canada, highlighting the role of technology and professional services alongside merchandise trade.
The renewed negotiations come as both countries seek to broaden commercial cooperation and establish a longer-term framework for economic engagement. If completed, the CEPA would provide a broader structure for trade between India and Canada and could influence the flow of goods and services between the two markets.
