Trade and investment continue to anchor the growing relationship between India and Canada, with both nations looking to significantly deepen economic engagement in the coming years. As bilateral trade gathers pace, discussions are now moving toward launching negotiations for a Comprehensive Economic Partnership Agreement (CEPA), aimed at creating a more structured and resilient trade framework.
Steady Growth in Goods and Services Trade
According to the Ministry of External Affairs, India (MEA), bilateral trade in goods reached CAD 13.32 billion in 2024. In 2025 (January–October), goods trade stood at CAD 11.09 billion, reflecting sustained momentum.
India’s exports to Canada include pharmaceuticals, electronic goods, gems and jewellery, seafood, and engineering products. In return, India imports minerals, pulses, potash, paper products, and scrap metals from Canada.
Services trade has emerged as an even stronger pillar of the partnership. In 2024, bilateral services trade touched CAD 19.61 billion, while between January and September 2025, it reached CAD 14.15 billion. Key sectors driving this growth include IT services, financial services, and education.
Strong Investment Flows
Investment ties between the two countries are equally robust. Canadian portfolio investments in India are estimated at over CAD 100 billion, underscoring Canada’s confidence in India’s long-term growth potential.
More than 600 Canadian companies operate in India, and over 1,000 are actively exploring new opportunities in the Indian market. Meanwhile, Indian companies have established a significant presence in Canada across sectors such as IT, banking, natural resources, and health sciences.
Renewed Focus on Energy Cooperation
Energy collaboration is gaining renewed attention. During India Energy Week 2026 in Goa, Canadian Energy Minister Timothy Hodgson and India’s Petroleum and Natural Gas Minister Hardeep Singh Puri relaunched the India–Canada Ministerial Energy Dialogue.
Canada’s position as a supplier of oil, gas, LNG, and critical minerals aligns well with India’s rising energy demand. The renewed dialogue is expected to open avenues for long-term partnerships in conventional energy as well as emerging clean energy technologies.
Also Read | India and Gulf Cooperation Council Launch FTA Negotiations to Deepen Trade and Investment Ties
CEPA Talks on the Horizon
Both sides are now preparing to begin negotiations for a Comprehensive Economic Partnership Agreement. The proposed CEPA is expected to strengthen trade architecture, diversify supply chains, and create new opportunities for businesses and investors.
As global economic dynamics shift, India and Canada appear committed to building a more resilient and forward-looking economic partnership—anchored in trade expansion, energy cooperation, and sustained investment flows.
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