New Delhi: Following several years of diplomatic friction between both the nations, India-Canada ties are looking promising as both the countries are making swift strides towards improving trade and business relations. Recently, Prime Ministers of Canada, Mr. Mark Carney and India’s Commerce Minister, Mr. Piyush Goyal, have been meeting on how to restore economic ties and accelerate negotiations for a significant Free Trade Agreement (FTA).
While visiting Canada, Piyush Goyal referred to the recent talks between the two countries as a “complete reset” in the relationship between the two countries. The two sides now are trying to reach a Comprehensive Economic Partnership Agreement (CEPA) that both governments expect to boost trade and investment, he said.
Mark Carney also described the proposed trade agreement as a “game changer” and stated Canada is “working fast” to strengthen the relationship in trade with India. Both nations aspire to finalise trade talks in the end of 2026, reports said. The latest talks follow a tense period in India-Canada relations that stemmed from the killing of Hardeep Singh Nijjar, India’s Sikh activist, in 2023 in Canada. This incident had placed India and Pakistan in deep conflict on the diplomatic front, and had resulted in a phased-down diplomatic interaction that both sides have been observing. But officials now claim recent meetings and economic ties with the country have set the stage for improved relations.
Piyush Goyal’s trip in Canada is viewed as a key effort to recreate trust building efforts. He led one of the biggest business delegations ever from India to Canada, comprising over 100 business leaders. The delegation will meet with business and government representatives in such areas as technology, clean energy, agriculture, education and manufacturing.
The two are also reportedly aiming for a bilateral trade volume of 50 billion U.S. dollars by 2030, a figure that would be close to triple the current volume. The CEPA is expected to provide greater market access, remove trade restrictions and promote investment in the trade and investment relationship between the two markets.
This positive development in relations is also associated to world favourable trade conditions. Canada has been trying to mitigate the effects of the U.S. trade market, in light of the lack of certainty in global markets and the changing dynamics between the U.S. and Canada. Meanwhile, India is simultaneously building economic relations with a number of countries in the west as well, such as the European Union and the United Kingdom.
Mark Carney has been in India earlier this year for talks with Prime Minister Narendra Modi. During the visit, it was reportedly aimed at the revival of economic cooperation efforts after a number of years of difficulties in economic cooperation with India. It was decided that during the visit, arrangements regarding energy, minerals, education and pharmaceuticals would be discussed.
The revival of talks is likely to be advantageous to both countries, trading specialists say. India has a big consumer market and a fast-growing economy, while Canada can boast of its natural resources, technology, clean energy and its knowledge and education system. Further, businesses from both sides of the fence will likely be significant drivers of enhanced investments and partnerships.
The bright side of this news has yet to come, according to analysts. Negotiations can continue having regard for diplomatic and security considerations and political sensitivities. But the latest conferences indicate that both sides would like to pursue a more sensible and more business-oriented relationship.
The exchange of hope generated by the renewed U.S.-China trade negotiations has given businesses and investors in both countries greater optimism. In successful negotiations, the India-Canada relationship has the potential to be one of the largest economic relationships for both countries in the near future.
