India Moves Toward Another Major Trade Pact; Canada Set to Become Sixth New Strategic Trade Partner

New Delhi, February 25, 2026 — India is on the verge of clinching another significant trade agreement, with Canada poised to become the sixth major country or bloc to finalize a trade pact with New Delhi within a year.

New momentum has gathered around the long-pending Comprehensive Economic Partnership Agreement (CEPA) between the two nations. Negotiations, which began nearly 15 years ago, had stalled repeatedly due to diplomatic tensions. However, ties have shown signs of improvement since Mark Carney assumed office as Canada’s Prime Minister last year, leading to renewed political engagement with Prime Minister Narendra Modi.

Fresh Push During Carney’s India Visit

In a significant diplomatic gesture, Prime Minister Carney is scheduled to visit India from February 26 for a 10-day trip, during which he is also expected to participate in Holi celebrations. According to reports, formal discussions on reviving and concluding the CEPA negotiations may be relaunched during this visit.

A crucial bilateral meeting between the two leaders is expected around March 2, just ahead of Holi, where trade is likely to dominate the agenda.

Ambitious $70 Billion Trade Target by 2030

Both countries are working toward an ambitious goal of expanding bilateral trade to $70 billion annually by 2030—more than double the current levels.

According to official Canadian sources:

• In 2024, India was Canada’s seventh-largest trading partner in goods and services, with bilateral trade reaching approximately $30.8 billion.
• The two countries agreed during the G20 Summit to pursue CEPA discussions aimed at achieving the $70 billion target by 2030.

Data from the Indian Consulate in Toronto indicates that total goods and services trade stood at $22.54 billion in 2024, with $11.01 billion recorded by July 2025.

What the CEPA Will Cover

India’s High Commissioner to Canada, Dinesh Patnaik, has expressed optimism that the agreement could be finalized within a year.

The Comprehensive Economic Partnership Agreement is expected to cover:

• Trade in goods and services
• Investment flows
• Agriculture
• Digital commerce
• Technology cooperation

In 2024, pharmaceuticals topped India’s exports to Canada, while India’s major imports from Canada included bituminous coal and dry peas.

Canada to Join List of Recent Trade Partners

If finalized, Canada will become the sixth major country or bloc to conclude a trade agreement with India in the past year. Recently, India has advanced trade pacts with:

• The United States
• The European Union
• The United Kingdom
• Oman
• New Zealand

The addition of Canada would further expand India’s global trade footprint amid its push to diversify supply chains and strengthen economic resilience.

Strategic and Economic Significance

Canada views India as the world’s fastest-growing major economy and a rising global powerhouse in commerce and technology. For India, deeper economic integration with Canada offers access to critical minerals, energy resources, advanced technology, and a large diaspora-driven business network.

With political ties warming and negotiations regaining momentum, the long-delayed CEPA may finally move toward conclusion—potentially reshaping India–Canada economic relations for the coming decade.