India to pursue free trade deal with Canada

ALBAWABA- India and Canada are set to accelerate negotiations on a comprehensive trade pact as both sides prepare for intensive talks aimed at fast-tracking a proposed Comprehensive Economic Partnership Agreement (CEPA), officials said.

India’s Minister of Commerce and Industry, Piyush Goyal, confirmed that senior negotiators from both countries will meet in Canada from May 25 to 27 to advance discussions on the deal, which is expected to significantly expand bilateral trade and investment flows.

During his visit, Goyal will lead a delegation of more than 150 Indian business leaders and officials, with a packed agenda including meetings with Canadian Prime Minister Mark Carney and Canada’s Minister of International Trade Maninder Sidhu. The program also includes around 150 engagements with pension funds, institutional investors, and industry representatives in Ottawa and Toronto.

The proposed CEPA is designed to reduce tariffs, improve market access, and strengthen cooperation across strategic sectors, including critical minerals, uranium, clean energy, artificial intelligence, pharmaceuticals, biotechnology, aerospace, defense, and agri-tech.

Officials said critical minerals are emerging as a central pillar of the talks, with India seeking secure supplies for electric vehicles and its broader energy transition agenda, while Canada aims to expand its role as a key supplier and investment destination.

Both countries are targeting a sharp expansion in bilateral trade, with India setting a goal of reaching $50 billion by 2030. The agreement is expected to facilitate greater Canadian institutional investment, particularly from pension funds, into Indian infrastructure and green energy projects, while improving access for Indian exporters in sectors such as textiles, leather, and services.

The upcoming negotiations mark the first major ministerial-level engagement since the CEPA Terms of Reference were signed in March 2026 during Prime Minister Carney’s visit to India. Relations between the two countries have improved after years of diplomatic strain, creating momentum for renewed economic cooperation.

Both sides have expressed optimism about agreeing by the end of 2026, viewing the deal as a key step toward supply chain diversification and long-term economic resilience amid global uncertainty. 

المصدر: Al Bawaba