India and Canada are set to reset their economic ties. Both nations have agreed to restart talks on a Free Trade Agreement (FTA) and target two-way trade of $50 billion by 2030. Commerce and Industry Minister Piyush Goyal said the renewed push reflects growing trust and a shared ambition to deepen economic cooperation.

Goyal noted that the proposed Comprehensive Economic Partnership Agreement (CEPA) would boost confidence for investors and businesses on both sides. He said India and Canada are “natural allies” with complementary strengths. Their strengths include critical minerals, processing technologies, and nuclear energy, including uranium supply. He added that the two countries can jointly build more diversified and resilient supply chains.

The announcement comes after Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney met on the sidelines of the G20 Summit in Johannesburg. Both leaders agreed to resume high-level engagement. PM Carney accepted Modi’s invitation to visit India in early 2026.

Talks had stalled in 2023. This was after Canada paused FTA negotiations amid political tensions following allegations made by then-Prime PM Justin Trudeau. India had dismissed those claims as “absurd.” Before that, the two nations had revived discussions on an interim trade pact, the Early Progress Trade Agreement (EPTA), in 2022. They held several rounds of talks.

Despite recent friction, trade between the two countries has remained steady. India’s exports to Canada rose 9.8% to $4.22 billion in 2024–25, while imports dipped slightly to $4.44 billion. Bilateral trade in goods and services stood at $18.38 billion in 2023. Canada also hosts a significant Indian community, with 2.9 million people of Indian origin and over 4.27 lakh Indian students.

With FTA talks back on track and political engagement improving, both nations are signaling a renewed commitment to stronger economic and strategic ties.

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