Sunday, 10 May, 2026
The negotiations were conducted in line with the Terms of Reference that were formally signed by the Trade Ministers of India and Canada on 2 March 2026. Image Source: PIB
Both countries expressed satisfaction with the progress achieved during the second round and agreed to continue negotiations in a positive, cooperative, and solution-oriented manner. The next round of CEPA negotiations is scheduled to take place in Ottawa, Canada, in July 2026.
India and Canada have successfully completed the second round of negotiations for the proposed Comprehensive Economic Partnership Agreement (CEPA). The discussions took place from 4–8 May 2026 at Vanijya Bhawan in New Delhi and were hosted by the Department of Commerce under the Government of India. This round of talks marked another important step in deepening the economic and commercial relationship between the two countries.
The negotiations were conducted in line with the Terms of Reference that were formally signed by the Trade Ministers of India and Canada on 2 March 2026. Throughout the week-long engagement, officials from both sides held detailed and constructive discussions aimed at building a balanced, comprehensive, and forward-looking trade agreement. The negotiations reflected the shared intention of both countries to strengthen bilateral trade, promote investment flows, and create new opportunities for businesses and consumers in both markets.
A wide range of areas were discussed during the negotiations. These included Trade in Goods, Trade in Services, Intellectual Property Rights, Rules of Origin, Sanitary and Phytosanitary Measures, and Technical Barriers to Trade, among several other important chapters. The discussions focused on improving market access, streamlining trade procedures, ensuring regulatory cooperation, and facilitating smoother movement of goods and services between the two economies.
Both countries expressed satisfaction with the progress achieved during the second round and agreed to continue negotiations in a positive, cooperative, and solution-oriented manner. The next round of CEPA negotiations is scheduled to take place in Ottawa, Canada, in July 2026. In the meantime, officials from both sides will continue intersessional engagements and technical consultations to maintain momentum in the negotiation process.
Trade and investment relations between India and Canada have emerged as a significant pillar of the broader and multi-dimensional partnership shared by the two nations. Bilateral economic engagement has expanded steadily in recent years, supported by strong complementarities between the two economies and growing business-to-business collaboration.
In 2025, India’s exports to Canada were valued at approximately CAD 9.68 billion, while imports from Canada stood at around CAD 3.87 billion. As a result, total bilateral trade in goods between the two countries reached CAD 13.55 billion during the year. This reflects the increasing scale and diversity of merchandise trade between the two partners.
Source: Ministry of Commerce and Industry, Government of India
Services trade has also become an increasingly important component of the bilateral economic relationship. In 2025, total bilateral services trade between India and Canada was valued at CAD 19.62 billion. India’s services exports accounted for CAD 4.45 billion, while services imports from Canada amounted to CAD 15.17 billion. The strong growth in services trade demonstrates expanding cooperation in sectors such as information technology, financial services, education, professional services, and digital innovation.
Canada continues to be a major source of investment into India. Portfolio investments from Canada into India are estimated to exceed CAD 100 billion, highlighting strong Canadian investor confidence in India’s long-term economic growth and investment potential. The increasing flow of investments also reflects India’s attractiveness as a stable and promising destination for global capital.
Commercial engagement between businesses of the two countries has also expanded considerably. More than 600 Canadian companies currently maintain a presence in India across sectors such as infrastructure, financial services, clean energy, technology, education, and manufacturing. In addition, over 1,000 Canadian companies are actively exploring or pursuing business opportunities in the Indian market, indicating sustained interest in India’s rapidly growing economy.
India’s exports to Canada are diversified across several sectors. Key export items include pharmaceutical products, machinery and mechanical appliances, iron and steel articles, electronic goods, organic chemicals, gems and jewellery, textiles and apparel, seafood, engineering products, and automobile components. These exports reflect India’s growing manufacturing strength and competitiveness in global markets.
On the other hand, India imports a range of important commodities and industrial inputs from Canada. Major imports include pulses, potash-based fertilizers, mineral fuels, wood pulp, diamonds and precious stones, aircraft parts, machinery components, paper and paperboard products, as well as iron and aluminium scrap. These imports play an important role in supporting India’s food security, industrial production, manufacturing supply chains, and infrastructure development.
The ongoing CEPA negotiations are expected to further strengthen this dynamic economic partnership by improving market access, encouraging investment, reducing trade barriers, and creating a more predictable and business-friendly framework for bilateral commerce. Once concluded, the agreement has the potential to significantly enhance trade volumes, deepen strategic economic cooperation, and contribute to long-term growth and prosperity for both India and Canada.
