India's Commerce and Industry Minister, Piyush Goyal, is scheduled to undertake a crucial visit to Canada from May 25 to 27. The visit is intended to propel ongoing trade negotiations and fortify economic relations between the two nations, particularly focusing on the India-Canada Comprehensive Economic Partnership Agreement (CEPA).
Advancing the India-Canada CEPA
Earlier this year, both India and Canada reignited discussions for a comprehensive free trade agreement. In March, they formally signed the Terms of Reference (ToR) for the CEPA, setting the framework for future negotiations. Prime Minister Narendra Modi articulated an ambitious goal at the time, aiming for bilateral trade to reach $50 billion by the year 2030.
Since the signing of the ToR, two rounds of negotiations have already been conducted. The most recent round took place in New Delhi from May 4-8. These discussions encompassed a broad spectrum of trade-related topics, including:
- Trade in Goods and Services
- Intellectual Property Rights
- Rules of Origin
- Sanitary and Phytosanitary Measures (SPS)
- Technical Barriers to Trade (TBT)
The upcoming visit by Minister Goyal is expected to inject further momentum into these CEPA talks. The next round of formal negotiations is anticipated to be held in Ottawa, Canada, in July.
Economic Impact and Bilateral Relations
The Federation of Indian Export Organisations (FIEO) has welcomed Minister Goyal's impending visit, recognizing it as a pivotal step towards enhancing bilateral economic and trade relations. S.C. Ralhan, President of FIEO, highlighted the potential benefits of the proposed trade agreement.
“The proposed trade agreement will open new opportunities for Indian exporters, particularly MSMEs, by improving market access, facilitating smoother trade procedures, and encouraging greater collaboration in technology and innovation-driven sectors. Amid evolving global trade dynamics and supply chain realignments, stronger India-Canada trade relations can contribute positively to economic resilience and growth for both countries,” said S.C. Ralhan.
In the fiscal year 2026, India's goods exports to Canada stood at $4.2 billion, while imports from Canada totaled $3.08 billion, resulting in a trade surplus of $1.14 billion for India. Key Indian exports include pharmaceuticals, iron and steel products, seafood, cotton garments, electronic goods, and various chemicals. Conversely, Canada's primary exports to India comprise pulses, pearls and semi-precious stones, coal, fertilizers, paper products, and petroleum crude.
Beyond merchandise trade, India also maintains significant ties with Canada through a substantial presence of Indian students and workers, further underscoring the multifaceted nature of their bilateral relationship.