India and Canada are advancing efforts to strengthen their economic ties, focusing on finalizing a Comprehensive Economic Partnership Agreement (CEPA) by 2026. This development comes amid improved diplomatic relations between the two nations, following a period of strain. Canadian Prime Minister Mark Carney recently emphasized the significance of this partnership for trade, investment, and security during a meeting on the sidelines of the United Nations General Assembly in New York.
In a move that underscores the deepening relationship, Indian Prime Minister Narendra Modi is expected to visit Canada in December. This visit coincides with the G20 summit in Miami, marking Modi’s first standalone bilateral visit to the country since 2015. Carney expressed anticipation for hosting Modi, highlighting the progress in negotiations and the importance of the bilateral relationship.
The fifth round of CEPA negotiations is slated to commence on October 5, following a productive fourth round earlier this month. Both countries are committed to accelerating discussions to achieve the shared goal of doubling two-way trade to C$70 billion annually by 2030. As of 2025, trade in goods and services between India and Canada stood at C$30.4 billion.
Efforts to enhance economic engagement were notably amplified after Carney’s visit to India in March 2026. During this visit, the two nations agreed to expedite CEPA negotiations and explore collaborations in sectors such as energy, technology, artificial intelligence, and defense. These initiatives are part of a broader strategy to rebuild and expand economic and diplomatic ties.
The potential agreement reflects both nations’ aspirations to significantly broaden their trade and investment footprint. With the groundwork laid for a deeper partnership, the upcoming discussions and Modi’s anticipated visit are seen as essential steps towards realizing these ambitions.