New Delhi: India and Canada are working towards a significant trading deal and the talks could spur a new momentum in the economic relationship between the two nations. Both parties are working towards the conclusion of negotiations on a Comprehensive Economic Partnership Agreement (CEPA) by the end of 2026. The pact might create new prospects for Indian companies, export and investment.
In the event of conclusion of the trade deal, India’s benefits include increased exports, investment and access to the Canadian market. By 2030, both countries hope to boost bilateral trade to approximately CAD 70 billion (₹4.65 lakh crore).
More opportunities for Indian exporters
A trade pact may lower tariffs, which would boost the competitiveness of Indian products in Canada. Businesses in Canada’s textile and pharmaceuticals, engineering goods, food products, technology and services sectors, among others, may have increased opportunities for Indian businesses.
Trade barrier reductions may have a positive effect on small and medium-sized Indian enterprises being able to access the Canadian market, and increase their export opportunities.
Services sector could get a boost
Close economic connections with India’s powerful services sector may also benefit Indian companies. The fields where there is space for further collaboration between both countries include IT services, digital businesses, professional services and telecommunications. A modern trade agreement is expected to bring new opportunities in Canada in the services, digital trade and telecommunications sectors.
More Canadian investment in India
The agreement might also spur Canadian pension funds and other institutional investors to invest more in India. Canadian investors are already present in the Indian market in significant sizes and both governments are keen to further enhance the relationship.
Greater investment would facilitate expansion of infrastructure, technology, clean energy and other emerging areas of business, and could lead to employment growth.
Critical minerals and energy cooperation
The partnership is also under discussion between India and Canada in the field of critical minerals and energy security. This could be important for India’s electric vehicle, electronics, renewable energy and high-tech industries, which need reliable supplies of key minerals.
Overall, a favorable outcome for a India-Canada trade agreement would enable Indian firms to reach larger global markets, and attract more investment and technology to India. If properly applied it may prove to be a significant step towards furthering India’s trade with the world and its economic growth.
