India, Canada launch CEPA talks; aim to push bilateral trade to $50 billion by 2030
Canada and India flag together realtions textile cloth fabric texture
India and Canada on Monday launched formal negotiations for a Comprehensive Economic Partnership Agreement (CEPA), with the two sides signing the Terms of Reference (ToR) in the presence of Prime Minister Narendra Modi and his Canadian counterpart Mark Carney at Hyderabad House.
The ToR was signed by Commerce and Industry Minister Piyush Goyal and Canada’s Minister of International Trade Maninder Sidhu, laying down the format, frequency and approach for the negotiations.
Addressing the ceremony, PM Modi said the two countries have set a target of achieving $50 billion in bilateral trade by 2030 and underlined the need to unlock the full potential of economic cooperation through an early conclusion of the CEPA. Carney described the move as an expansion of a valued partnership with “new ambition, focus and foresight”.
The launch of negotiations follows discussions between the two leaders on the margins of the G7 summit in Kananaskis in October 2025, where they agreed to expedite the framework for CEPA talks.
The proposed agreement will cover trade in goods and services, along with other mutually agreed policy areas. Officials said the ToR would guide efforts to conclude a balanced and mutually beneficial pact.
Bilateral trade between India and Canada stood at $8.66 billion in FY 2024-25, with India exporting goods worth $4.22 billion and importing $4.44 billion, according to official data.
India’s key exports to Canada include pharmaceuticals, iron and steel, seafood, cotton garments, electronic goods and chemicals. Major imports from Canada include pulses, pearls and semi-precious stones, coal, fertilisers, paper and crude petroleum.
In services, India’s exports to Canada are led by telecommunications, computer and information services, and other business services — sectors that are expected to gain from deeper market access under the CEPA.
Canada, which has a population of 41.65 million and a GDP of $2.34 trillion (PPP terms), is also home to over 4.25 lakh Indian students and a large Indian diaspora, adding a people-to-people dimension to the economic partnership
