India, Canada race to seal trade deal; trade minister to visit New Delhi again in October
India and Canada Push for Trade Pact Ahead of December Diplomacy
Bharatmorningnews.com – India and Canada are accelerating negotiations on a proposed comprehensive economic partnership agreement as both governments seek to complete the pact before Prime Minister Narendra Modi’s expected visit to Canada in December.
Canadian trade minister Maninder Sidhu is likely to return to New Delhi around October 15, marking his second India visit in less than a month. His trip is expected to follow the fifth negotiating round for the India-Canada CEPA, which is scheduled to begin in Canada on October 5.
Sidhu is expected to meet commerce and industry minister Piyush Goyal in New Delhi after the negotiations. The discussions have advanced rapidly since India and Canada formally launched the process in March, and the remaining difficult questions may now require decisions at the ministerial level.
“Obviously, with a trade deal, it isn’t done until there is agreement on all issues. But both sides are intent on concluding the negotiations as soon as possible.”
Political attention turns to unresolved issues
Officials from the two countries have addressed most major elements of the proposed agreement. The focus is now moving from technical negotiations to sensitive issues that need political guidance and ministerial authority.
Goyal has said the CEPA discussions will soon receive greater political involvement, with the Indian and Canadian trade ministers expected to stay closely engaged. The statement followed his meeting with Sidhu in Mumbai, held shortly after the fourth round of negotiations in New Delhi from September 14 to 18.
Before Sidhu’s anticipated October visit, commerce secretary Rajesh Agrawal may also meet senior Canadian trade officials while travelling through Canada on a separate journey to Mexico. India is pursuing a bilateral trade agreement with Mexico as well, reflecting New Delhi’s broader effort to expand market access through new commercial partnerships.
Canadian trade mission to coincide with minister’s trip
Sidhu’s mid-October visit is expected to overlap with a large Canadian business delegation travelling to India to examine investment and trade opportunities. The mission is intended to deepen corporate links and identify areas where businesses from both countries can work together.
During his recent Mumbai visit, Sidhu met representatives of Mahindra & Mahindra, Bajaj Integrated Health System, the JSW group and CAE. Their discussions covered potential cooperation in life sciences, clean technology, energy transition and aerospace.
Those sectors illustrate the wider ambitions behind the proposed CEPA. A trade agreement could make it easier for businesses to plan cross-border investment, source supplies and sell products and services in each other’s markets. It could also provide a clearer framework for commercial activity as the bilateral relationship recovers from a period of serious strain.
Goyal had earlier visited Canada from May 25 to 27 with an Indian business delegation that included industry leaders from more than 100 companies. That trip signalled renewed momentum in economic engagement between the two countries.
Trade target of $70 billion by 2030
India and Canada are working toward a goal of raising two-way trade to $70 billion by 2030. Their combined trade in goods and services reached $30.4 billion in 2025, including $13.6 billion in merchandise trade.
Canada currently sells India goods valued at $3.9 billion, including vegetables, mineral fuels and oils, and wood pulp. India’s merchandise exports to Canada total $9.7 billion and include precious stones, metals, machinery and pharmaceutical products.
Energy is seen as one of the areas with considerable potential. India could buy Canadian energy in substantial quantities, while Canadian businesses are also looking at opportunities connected with India’s large market, industrial expansion and demand for technology-driven partnerships.
The prospective agreement therefore carries significance beyond tariffs alone. It could support more predictable trade conditions for companies, promote investment conversations and give businesses greater confidence to pursue longer-term projects across the two economies.
Improving ties provide opening for negotiations
The renewed trade push comes after bilateral relations had reached their weakest point in decades. Tensions escalated after former Canadian prime minister Justin Trudeau alleged that Indian government agents were involved in the 2023 killing of Khalistani separatist Hardeep Singh Nijjar. India rejected the allegation, and the two countries subsequently took several punitive measures against each other.
Relations began to improve after Mark Carney became Canada’s prime minister in 2025. Both sides moved quickly to restore engagement, while Canada also sought to strengthen its economic connections with countries including India amid trade tensions with the United States.
India and Canada opened CEPA negotiations in New Delhi on March 2. Goyal and Sidhu signed the terms of reference in the presence of Prime Ministers Modi and Carney, setting the framework for the talks. The first round was conducted virtually, and subsequent discussions have moved at a faster pace.
Modi is expected to travel to the United States, Canada and Belgium around the middle of December. He is due to attend the G20 Summit in the United States, while the Canada and Belgium visits are expected to focus strongly on trade relations. India’s free trade agreement with the European Union is anticipated to be signed during the Belgium leg of the trip.
A completed India-Canada CEPA before the December visit would give the two governments a major economic outcome to showcase. Even if final issues remain, the intensified ministerial engagement and planned business mission indicate that both sides are treating the timetable as a priority.
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