India, Canada target CAD 70 billion in bilateral trade by 2030, eye investment treaty talks | Today’s news
India and Canada have set a common goal of expanding bilateral trade to 70 billion Canadian dollars, or ₹4.65 trillion, by 2030, while India said it is ready to start negotiations on a bilateral investment treaty (BIT) at the earliest, according to a joint statement issued on Friday after the first economic and financial dialogue between Canada and India’s finance ministers.
Finance Minister Nirmala Sitharaman and Canada’s Minister of Finance and National Revenue François-Philippe Champagne concluded the inaugural dialogue, which focused on deepening economic and financial cooperation, including trade and investment.
The dialogue builds on the commitment made by Canadian Prime Minister Mark Carney and Prime Minister Narendra Modi during their meeting in New Delhi in March 2026 to strengthen bilateral economic and financial ties. The two countries have also pledged to conclude negotiations on a Canada-India Comprehensive Economic Partnership Agreement (Cepa) by the end of 2026.
The ministers exchanged views on global macroeconomic developments and domestic policy priorities and discussed ways to deepen economic and investment ties with the aim of strengthening financial and trade ties between the two countries.
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“India has expressed its readiness to start negotiations on a bilateral investment treaty as soon as possible,” the joint statement said.
Investment pressure
The Ministers welcomed the growing investment relationship between India and Canada and recognized the role of long-term institutional capital in strengthening bilateral economic ties.
They noted the significant presence of Canadian pension funds and other institutional investors in India, as well as their potential to contribute to economic growth and development. They also acknowledged that the tax breaks that India currently provides to these investors have helped stimulate investment.
Ministers discussed the importance of domestic tax legislation that provides taxpayers with stability and security for their investments. They also explored ways to increase engagement between Indian and Canadian financial institutions and institutional investors and identify commercially viable investment opportunities across sectors of mutual interest, the statement said.
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Deeper financial ties
Another topic was cooperation in the financial sector, with ministers exploring deeper cooperation in payments modernization, financial stability, fintech innovation, capital markets development and efforts to combat financial crime.
They agreed to promote the involvement of relevant authorities and stakeholders in cross-border transfers and merchant payments.
Ministers also welcomed opportunities to expand the use of UPI in Canada through partnerships with payment service providers. Such efforts, they said, could enable faster, more efficient and cost-effective payments, while promoting bilateral trade, tourism, education and the growth of small and medium enterprises in both countries.
The ministers also discussed international economic and financial developments and opportunities for cooperation in areas of common interest.
Recognizing the importance of resilient and diversified supply chains for economic security and sustainable growth, they agreed to cooperate in strategic sectors, including critical minerals.
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Following the dialogue, Sitharaman and Champagne engaged with representatives from Canada’s financial services, fintech, technology, artificial intelligence, infrastructure and energy and natural resources sectors.
The discussions highlighted common priorities and opportunities to expand long-term cooperation between businesses, financial institutions and other stakeholders in both countries.
The ministers reaffirmed their commitment to strengthening bilateral economic and financial ties through regular dialogue and the promotion of concrete cooperation in areas of common interest. The next economic and financial dialogue will take place in 2027.
