India, Canada boost ties as they agree to resume FTA talks

India and Canada have agreed to restart negotiations on the long-pending Comprehensive Economic Partnership Agreement (CEPA), marking a significant step toward normalising diplomatic ties after tensions escalated in 2023 over the killing of Khalistani separatist Hardeep Singh Nijjar.“We have agreed to begin negotiations on a high-ambition CEPA and double the trade between the two nations by 2030,” Commerce and Industry Minister Piyush Goyal announced on Monday. He said the proposed trade pact aims to more than double bilateral trade to $50 billion by 2030, signalling renewed optimism in economic engagement.

Held a constructive meeting with @VictorFedeli, Ontario's Minister of Economic Development, Job Creation & Trade, Canada.

Our discussions focused on strengthening Indo-Canadian trade, enhancing investment opportunities, and deepening collaboration across various sectors. ???????????????? pic.twitter.com/dx25bMHMPU

— Piyush Goyal (@PiyushGoyal) November 24, 2025

Goyal’s announcement came a day after Prime Minister Narendra Modi met Canadian Prime Minister Mark Carney on the sidelines of the G20 Leaders’ Summit in Johannesburg. Carney has accepted Modi’s invitation to visit India in early 2026, according to a statement issued by the Canadian Prime Minister’s Office. “The prime ministers agreed on the importance of regular reciprocal high-level visits, including by ministers and members of the business community,” the statement said.
Carney’s upcoming visit is expected to infuse fresh momentum into the CEPA negotiations, which have remained unresolved for nearly a decade and a half. The talks, first launched in 2010, saw 10 formal rounds before stalling in 2017. Efforts were revived in March 2022 but paused again in 2023 after then-Prime Minister Justin Trudeau alleged a possible Indian link to Nijjar’s killing—an allegation firmly rejected by New Delhi.
According to the Canadian PMO, the renewed CEPA framework will cover goods, services, investment, agriculture and agri-food, digital trade, mobility, and sustainable development, with both nations agreeing on terms of reference to guide the next phase of talks.Speaking at an event hosted by the Indo-Canadian Business Chamber, Goyal said the CEPA would enhance investor confidence and create a stronger mechanism for resolving bilateral issues “based on mutual respect.” He added, “The strengths of Canada and the strengths of India together can become a force multiplier for businesses and investors.”In a parallel development, India and the European Union are preparing to finalise their own free trade agreement during the annual summit in New Delhi on January 27. The proposed pact—along with a defence cooperation framework and a new strategic agenda—aims to elevate the India-EU partnership to a significantly stronger footing.

(Business Correspondent)