India and Canada have formally launched negotiations for a Comprehensive Economic Partnership Agreement (CEPA), marking a significant step toward strengthening economic ties and expanding cooperation across key sectors.

The Terms of Reference (ToR) for the India–Canada CEPA negotiations were signed on March 2 in New Delhi by Piyush Goyal, India’s Minister of Commerce and Industry, and Maninder Sidhu, Canada’s Minister of International Trade. 

Speaking at the ceremony, Prime Minister Modi emphasised that both countries aim to increase bilateral trade to US$50 billion by 2030, stressing the need to unlock the full potential of economic cooperation through the early conclusion of CEPA. Prime Minister Carney described the initiative as an expansion of an already valued partnership with “new ambition, focus and foresight,” reflecting the confidence of two nations shaping their economic future together.
The launch of negotiations follows discussions between the two leaders during a bilateral meeting on the sidelines of the G7 Summit 2025 in October 2025, after which both sides began working toward finalising the framework for CEPA negotiations. The agreement is expected to cover trade in goods and services, along with other mutually agreed policy areas.

Beyond trade, the leaders also underscored their commitment to deepening long-term, reciprocal investment partnerships in the energy and natural resource sectors, recognising the scale of ongoing projects and emerging opportunities in both markets. They welcomed the signing of a Memorandum of Understanding on Critical Minerals Cooperation, reflecting a shared commitment to building resilient, secure, and diversified critical minerals supply chains.

India endorsed the G7 Critical Minerals Action Plan, which promotes diversified and responsible production and supply of critical minerals while encouraging investment and innovation across value chains essential for clean energy, advanced manufacturing, and technology. The leaders also discussed India’s participation in the Prospectors and Developers Association of Canada Convention 2026 in March and welcomed plans for a ministerial-led Indian energy and industry delegation to Canada in summer 2026 to support stronger commercial outcomes for companies from both countries.

Both sides agreed to further strengthen collaboration in investment, clean energy technologies, and future-oriented industries, while deepening cooperation on critical minerals and energy transition pathways. This includes exploring collaboration on supporting India’s mineral stockpiling initiative, sharing expertise on emissions reduction and transition technologies, and enabling stronger commercial partnerships between Indian and Canadian companies.

Canada represents a significant market, with a population of over 41.6 million people and a GDP of about US$2.34 trillion (PPP). The CEPA is expected to unlock greater potential in bilateral trade, which stood at US$8.66 billion in FY 2024–25, according to the Directorate General of Commercial Intelligence and Statistics (DGCI&S). India exported goods worth US$4.22 billion to Canada, while imports totalled US$4.44 billion.
India’s key exports to Canada include iron and steel, cotton garments, and electronic goods, among others.