India and Canada are working towards expanding bilateral trade under ongoing discussions, aiming to reach a total trade value of $50 billion between the two countries by2030. Discussions are underway on a proposed roadmap to expand trade and investment between the two countries. The proposed plan is a major new initiative designed to improve business relations and aimed at enhancing trade flows and increasing investment opportunities in both markets.
India-Canada bilateral trade stands at approximately $15-16 billion (import-export of goods and services). Both countries plan to rapidly grow their trade over the next five years by cutting trade barriers, increasing investments in each other’s markets, and deepening technical and business ties.
Officials familiar with the discussions said the focus areas include technology, clean energy, agriculture, infrastructure, education, pharmaceuticals, artificial intelligence, advanced manufacturing, and critical minerals. Both sides are expected to explore structured mechanisms to reduce trade barriers and improve regulatory coordination.
Reviving Negotiations on CEPA and FIPA
The renewed push is also linked to attempts to restart negotiations on long-pending trade and investment agreements, including the Comprehensive Economic Partnership Agreement (CEPA) and the Foreign Investment Promotion and Protection Agreement (FIPA). Talks on these frameworks had slowed in recent years due to diplomatic differences, but both governments are now working to re-engage on economic issues.
Officials indicated that the revival of these negotiations is aimed at building a more predictable and stable trade environment. Business leaders have long argued that such agreements are essential for boosting investor confidence and facilitating long-term commercial partnerships.
Critical minerals and Strategic Alliance
A key area of focus in the proposed partnership is critical minerals, including lithium, cobalt, and nickel, which are essential for electric vehicles, renewable energy systems, and battery manufacturing. Canada, with its rich mineral reserves, is seen as an important supplier, while India is seeking to secure reliable supply chains to support its clean energy and industrial growth ambitions.
Apart from minerals, both countries are also expected to deepen collaboration in higher education, digital technologies, and services. Canada remains a major destination for Indian students, while Indian companies continue to expand in sectors such as IT services, pharmaceuticals, and financial technology.
Leaders from both industries have welcomed the initiative because it creates chances to sell more goods abroad, work together on new projects, and team up on tech. Experts also highlight that having multiple trade partners is important when the world economy is unpredictable.
No official deal is signed yet, but talks will keep happening in the coming months. Officials said the proposed roadmap is still under development. If it works out, it could totally change how India and Canada do business with each other over the next ten years.
