India, Canada agree to fast-track FTA negotiations, says Piyush Goyal

PM Modi with Canada PM Mark Carney

India and Canada have agreed to fast-track negotiations for a free trade deal aimed at doubling bilateral trade by 2030, Commerce Minister Piyush Goyal said on November 24.

Speaking at the Indo-Canadian Business Chamber in New Delhi, Goyal highlighted opportunities for collaboration in critical minerals, clean and nuclear energy, emerging technologies, and supply-chain diversification, underscoring the strong complementarity between the two nations.

Referring to the recent meeting between Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney during the G20 Summit, Goyal said that both leaders agreed to begin negotiations for a high-ambition Comprehensive Economic Partnership Agreement (CEPA).

Goyal said that CEPA reflects the trust between the two countries, strengthens investor confidence and provides a robust framework for addressing issues based on mutual respect.

He called for revitalising the CEO Forum to enhance business-to-business partnerships and urged Canadian participation in India’s upcoming AI Summit.

"He encouraged joint innovation, noting India’s strong IPR regime, large datasets and cost-effective innovation environment, supported by the recently announced $12 billion fund for research and development," a statement from the Indian side on November 24 said.

Trade between India and Canada grew 3.2 percent on-year in 2024-25 to 8.67 billion.

Talks for a free trade agreement between the two sides were re-launched in March 2022 after a decade, with nine rounds of conducted till July 2023.

Negotiations were suspended around September 2023, as ties nosedived due to the rise of pro-Khalistani activities in Canada and then-prime minister Justin Trudeau’s statement in parliament of evidence linking Indian government agents to the murder of Hardeep Singh Nijjar, a Sikh separatist.

Before the freeze, both sides expected to sign an interim free trade deal by 2023, a precursor to a Comprehensive Economic Partnership Agreement.

After Trudeau’s departure in January 2025, Ottawa and New Delhi have taken steps to improve the fractured relationship.