New Delhi: India on Monday signaled renewed momentum in its economic partnership with Canada, highlighting opportunities in critical minerals, clean energy and emerging technologies as both countries seek to diversify supply chains and build secure technology ecosystems.
Speaking at the Indo-Canadian Chamber of Commerce in the capital, Commerce Minister Piyush Goyal said India’s strengths in artificial intelligence (AI), quantum computing, machine learning and next-generation data centers — backed by the world’s largest pool of STEM graduates — position the country as a strategic partner for Canada.
The renewed commitment comes as both governments seek to accelerate the conclusion of a comprehensive and ambitious Economic Partnership Agreement (CEPA) and double bilateral trade by 2030.
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With trade talks deadlocked, Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney agreed to resume talks on June 18 during the G7 summit in Kananaskis. Since then, senior Canadian ministers—including Foreign Affairs Minister Anita Anand (October 12-14) and Commerce Minister Maninder Sidhu (November 12-14)—have visited India to restore confidence and momentum.
Goyal emphasized that India and Canada remain natural allies, anchored in democratic values and mutual trust, and that bilateral engagement across trade and investment continues to deepen despite past tensions. He highlighted India’s expanding 500 GW national power grid, including 250 GW of clean energy capacity, as a key enabler for AI-driven infrastructure, adding that India aims to double its clean energy capacity to 500 GW by 2030 and is one of the few democracies capable of offering uninterrupted clean energy at competitive global rates.
The minister also noted the strengthening of financial ties, pointing to the continued interest of Canadian pension funds and the growing presence of Canadian companies in infrastructure, renewables and technology. Trade experts say the renewed diplomatic engagement has raised expectations across the industry as the two economies aim to stabilize ties and restore confidence after a turbulent period.
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“India and Canada resuming FTA (Free Trade Agreement) talks is a highly positive signal for exporters,” said Ajay Sahai, CEO of the Federation of Indian Export Organizations (FIEO). “Faster market access and lower tariffs can unlock real opportunities for Indian industries such as textiles, engineering goods, pharmaceuticals and agricultural products. A balanced, modern FTA can deepen supply chains, increase competitiveness and open up a high-value market – giving India’s export growth a strong strategic advantage.”
Highlighting the potential of critical minerals, Rajnish Gupta, Partner, Tax and Economic Policy Group, EY India said, “Canada is the world’s leading producer of potash. It is among the leaders in several critical minerals like lithium, cobalt, graphite. It also has a world-leading mining finance ecosystem in Toronto…This partnership can help develop secure energy diversified supply chains in India.”
India’s trade with Canada remains slightly in deficit, with exports at $4.22 billion and imports at $4.44 billion in FY25. Exports rose from $3.84 billion in FY24, while imports fell from $4.55 billion.
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India imports critical minerals, nuclear and clean energy equipment, aircraft parts and agricultural products, including lentils. Its exports to Canada include textiles, automotive components, pharmaceuticals, IT services and food products, including dairy products.
Bilateral relations deteriorated sharply in 2023 after Canadian Prime Minister Justin Trudeau accused Indian agents of involvement in the killing of a Khalistan separatist. India denied the allegations, expelled Canadian diplomats, and Ottawa responded in kind. Trade negotiations were suspended, visa services were briefly suspended, and diplomatic engagement was frozen. However, trade between the two countries continued despite diplomatic tensions.
