India and Canada Launch CEPA Negotiations, Set $50 Billion Trade Target by 2030

India and Canada formally launched negotiations for a Comprehensive Economic Partnership Agreement (CEPA) in New Delhi on 2 March 2026, marking a significant step toward deepening bilateral economic ties.

The Terms of Reference (ToR) for the negotiations were signed by Shri Piyush Goyal, Minister of Commerce & Industry, and Mr. Maninder Sidhu, Canada's Minister of International Trade. The documents were exchanged in the presence of Prime Minister Shri Narendra Modi and Canadian Prime Minister Mr. Mark Carney at Hyderabad House.

Ambition to Reach $50 Billion Trade by 2030

During the ceremony, Prime Minister Narendra Modi set an ambitious target of expanding bilateral trade to US$50 billion by 2030.

He emphasised that unlocking the full potential of economic cooperation requires the early conclusion of a Comprehensive Economic Partnership Agreement.

Prime Minister Mark Carney described the initiative as an expansion of a valued partnership with "new ambition, focus and foresight," reflecting collaboration between two confident nations charting their own economic futures.

Framework for Negotiations

The signed Terms of Reference outline:

• The structure and format of negotiations

• Frequency of negotiation rounds

• The approach to concluding a balanced and mutually beneficial agreement

The ToR will serve as a guiding framework to facilitate negotiations across key areas and ensure structured progress toward finalising the CEPA.

The launch follows commitments made during the leaders' bilateral meeting on the sidelines of the G7 Summit in Kananaskis, Canada, in October 2025.

Scope of the CEPA

Negotiations will cover:

• Trade in goods

• Trade in services

• Other mutually agreed policy areas

The agreement is expected to address tariff liberalisation, market access, regulatory cooperation and investment facilitation, among other areas.

Current Trade Landscape

Bilateral trade between India and Canada stood at USD 8.66 billion in FY 2024–25, with:

• Exports from India: USD 4.22 billion

• Imports from Canada: USD 4.44 billion(Source: DGCI&S)

The CEPA aims to significantly scale up this trade volume over the next decade.

Key Indian Exports to Canada:

• Drugs and pharmaceuticals

• Iron and steel

• Seafood

• Cotton garments

• Electronic goods

• Chemicals

Key Indian Imports from Canada:

• Pulses

• Pearls and semi-precious stones

• Coal

• Fertilisers

• Paper

• Petroleum crude

Expanding Services Trade

India's services exports to Canada are led by:

• Telecommunications

• Computer and information services

• Other business services

These sectors are expected to experience strong growth following CEPA implementation, particularly as digital trade and technology collaboration expand.

Strategic and Demographic Linkages

Canada, with a population of 41.65 million (2025) and a GDP of US$2.34 trillion at PPP, represents a significant advanced economy market.

The partnership is further strengthened by deep people-to-people ties:

• Over 425,000 Indian students are currently studying in Canada

• A large and influential Indian diaspora contributes to economic and cultural linkages

These connections have been described as forming "One Family," underscoring the social foundation of economic cooperation.

Strategic Implications

The CEPA negotiations signal a renewed momentum in India–Canada relations, focusing on:

• Diversified trade partnerships

• Supply chain resilience

• Technology and services collaboration

• Energy and resource security

By setting a $50 billion trade target, both countries are positioning the CEPA as a transformative instrument rather than a routine trade agreement.

If concluded successfully, the CEPA could significantly expand bilateral trade flows, strengthen investment ties and reinforce strategic economic engagement between two major Indo-Pacific democracies.