India and Canada are seeking to take bilateral trade to US$50 billion by 2030, as the two countries step up economic and financial cooperation following a period of strained ties.
The target was reiterated during the first India-Canada Finance Ministers’ Economic and Financial Dialogue in Toronto on August 27.
The meeting between Union Finance Minister Nirmala Sitharaman and Canadian Finance and National Revenue Minister François-Philippe Champagne also covered investment, financial services, digital payments and critical minerals.
CEPA Talks Continue
The two countries are negotiating a Comprehensive Economic Partnership Agreement (CEPA) aimed at expanding trade and investment. Negotiations were formally launched in March 2026, following an agreement between Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney.
The third round of negotiations was held in Ottawa from July 6 to 10, with discussions covering areas including trade in goods and services, intellectual property, rules of origin and market access. Both sides have committed to concluding the negotiations in 2026.
The CEPA is expected to provide a framework for expanding economic engagement between the two countries and support their 2030 trade objective.
Trade Stands At $7.96 Billion
India’s merchandise trade with Canada stood at approximately US$7.96 billion in FY2025-26, according to Ministry of Commerce data. India’s exports to Canada were around US$4.67 billion, while imports from Canada stood at about US$3.29 billion.
The figures put India’s merchandise trade surplus with Canada at roughly US$1.39 billion during the financial year.
The latest Indian figures are reported on a financial-year basis. Canada’s own trade statistics, which use calendar years, show two-way merchandise trade at US$10.9 billion in 2025, comprising US$3.9 billion in Canadian exports to India and US$7 billion in imports from India. The figures use different reporting periods and should therefore not be directly compared.
Investment Treaty On Agenda
During the finance ministers’ dialogue, India expressed readiness to begin negotiations on a Bilateral Investment Treaty (BIT) with Canada at the earliest.
The two countries also discussed strengthening engagement between financial institutions and institutional investors and exploring investment opportunities in sectors of mutual interest.
The Canadian government said the ministers recognised the role of Canadian pension funds and other institutional investors in India and discussed measures to facilitate greater financial-sector cooperation.
UPI, Fintech Cooperation Discussed
Financial technology and cross-border payments were also part of the discussions.
The two ministers agreed to encourage engagement between relevant authorities and stakeholders on cross-border remittances and merchant payments. They also welcomed opportunities to expand the use of India’s Unified Payments Interface (UPI) in Canada through partnerships with Canadian payment service providers.
The Canadian government said such cooperation could support payments related to bilateral trade, tourism, education and small and medium-sized businesses.
The ministers also discussed financial stability, fintech innovation, capital markets and efforts to address financial crime.
Critical Minerals In Focus
India and Canada also agreed to pursue opportunities for cooperation in critical minerals, citing the importance of resilient and diversified supply chains.
The dialogue comes as both countries seek to broaden their economic relationship across trade, investment, financial services, technology, energy and strategic resources. The Canadian government said the next India-Canada Economic and Financial Dialogue will take place in 2027.
The US$50 billion trade target remains part of the broader economic reset announced by the two countries in March, when they agreed to pursue a “balanced and mutually beneficial” CEPA covering goods, services and other areas.
Also Read: West Bengal’s Malati Murmu Builds A Free Classroom For 60 Children From Her Own Mud House
