New Delhi, May 05: India and Canada have commenced the second round of negotiations for a bilateral free trade agreement, aiming to conclude the pact by year-end. The talks, part of the proposed Comprehensive Economic Partnership Agreement (CEPA), are being held in New Delhi over five days.
The negotiations come ahead of Piyush Goyal’s scheduled visit to Canada later this month, as both countries look to accelerate economic engagement and scale bilateral trade to $50 billion by 2030.
The first round of CEPA discussions was held in March following a meeting between Narendra Modi and Mark Carney in New Delhi, which marked a reset in diplomatic ties after a period of strain.
Officials said both sides are working to fast-track negotiations in line with the leaders’ directive to finalise the agreement within the year. The proposed trade framework is expected to strengthen cooperation across sectors, including energy and critical minerals.
Currently, bilateral trade in goods stands at $8.66 billion (FY25), with India exporting $4.22 billion worth of goods to Canada. Key exports include pharmaceuticals, engineering goods, textiles, and gems and jewellery, while imports from Canada include pulses, fertilisers, mineral fuels, and industrial raw materials.
India’s IT sector remains a major contributor to services exports, underlining the growing importance of digital and knowledge-based trade in the bilateral relationship.
The CEPA is expected to serve as a long-term economic anchor, supporting deeper trade integration and investment flows between the two countries.
