Canada and India are planning to boost their bilateral trade from $30 billion to $70 billion within the next five years. This ambitious target was announced by Canadian International Trade Minister Maninder Sidhu during the 2026 G20 Trade Ministers Meeting held in Milwaukee on October 2. Sidhu stated that ongoing negotiations for a free trade agreement are expected to progress significantly in the coming months.

Emphasising the cooperative approach, Sidhu noted that leaders from both nations have established a clear vision to enhance trade. He highlighted the importance of facilitating free trade to ensure mutually beneficial economic growth rather than fostering competition. The next round of negotiations, the fifth, is set to take place in Ottawa soon, which signals a continuation of this dialogue.

Sidhu pointed out the recent talks he had in India, mentioning a meeting with Indian Commerce Minister Piyush Goyal in Mumbai. This meeting focused on the fourth round of negotiations, with the fifth round now approaching, indicating robust engagement between the two countries.

Current Investment and Economic Collaboration

According to Sidhu, Canada has a significant financial presence in India, being the largest investor with over $100 billion in investments. This investment spans various sectors, including infrastructure projects such as airports and highways. He expressed a desire for increased cooperation, mentioning that Canadian companies are eager to engage more with Indian investors in mining and energy projects.

Energy and critical minerals have been identified as focal points for the economic alignment between Canada and India. Sidhu noted that as India’s economy grows at a rate of 7 per cent annually, the demand for energy will increase by 70 per cent by 2035, creating an opportunity for Canada to support India’s energy needs. The recent launch of an LNG project, the second-largest of its kind in the world, aligns with Canada’s commitment to providing energy resources to India.

While details of the trade agreement remain confidential due to ongoing discussions, the Canadian minister highlighted the significance of supply chain diversification. He mentioned that India requires support in its growing auto sector, particularly for electric vehicles and batteries, an area where Canada has substantial resources and expertise.

Accelerating Trade Talks

In a related development, Union Commerce Minister Piyush Goyal confirmed that both countries are keen to expedite negotiations for a Comprehensive Economic Partnership Agreement (CEPA). The next round of talks is scheduled for October 5. Goyal noted that constructive discussions were held to fast-track this process, showing a commitment from both sides to enhance their trade relationship.

Goyal also recapped the fourth round of negotiations with Sidhu in Mumbai, labelling them as productive. He expressed optimism about the pace of negotiations improving and outlined that the upcoming 90 days could be pivotal for the Canada-India partnership.

This renewed focus on trade follows a decade-long discussion about a comprehensive trade pact between the two nations, which had seen a pause amid strained bilateral relations until momentum resumed in 2025. An Early Progress Trade Agreement is also being pursued as a preliminary step towards the comprehensive agreement.

Trade figures indicate that bilateral trade between India and Canada was approximately $8 billion in the fiscal year 2025-26, with India exporting goods valued at $4.67 billion and importing goods worth $3.28 billion. These figures underscore the potential for substantial growth as both countries work towards their ambitious goals for trade expansion.

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