Canada and India have agreed to restart negotiations on a bilateral free trade agreement, signaling a significant step in restoring economic and diplomatic ties between the two nations.
The announcement came after Canadian Prime Minister Mark Carney and Indian Prime Minister Narendra Modi met on the sidelines of the Group of 20 summit in South Africa. According to India’s Ministry of External Affairs, the leaders will “begin negotiations on a high-ambition Comprehensive Economic Partnership Agreement.” Modi also extended an invitation for Carney to visit India in the near future.
Prime Minister @narendramodi and I met at the G20 Summit today, and launched negotiations for a trade deal that could more than double our trade to $70 billion.
India is the world’s fifth largest economy, and that means big new opportunities for Canadian workers and businesses. pic.twitter.com/xjbBIRqcs9
The proposed trade deal aims to elevate bilateral trade to $50 billion by 2030. In 2024, Canada and India exchanged approximately CAD$31 billion ($22 billion) in goods and services, underscoring the potential for growth in this economic partnership.
Previous efforts to secure a Canada-India trade deal stalled following tensions in 2023. Diplomatic relations suffered after Canadian officials, including then-Prime Minister Justin Trudeau, cited evidence suggesting Indian involvement in the killing of a Canadian citizen in the Vancouver area. Criminal charges have been filed in Canada, and the trial is pending.
India has also criticized Canada for insufficient action against separatist groups active on Canadian soil. The diplomatic strain led both countries to pause high-level trade discussions.
Since taking office in March, Carney has prioritized mending these strained ties. Both governments appointed new ambassadors this summer, reflecting a commitment to stabilize diplomatic channels.
Ahead of the G20 meeting, Carney emphasized the importance of stronger trade access to India, describing it as “one of the world’s largest and fastest-growing economies.” Beyond trade, Canada and India maintain ongoing dialogue between their law enforcement and national security agencies, aiming to address mutual security concerns.
Observers say the renewed talks could expand opportunities in sectors such as clean energy, technology, and critical minerals, aligning with broader global economic trends.
The high-level negotiations mark a pivotal step toward revitalizing bilateral trade, restoring trust, and reinforcing Canada and India’s long-term economic partnership.
