India and Canada Discuss Strengthening Economic Ties Amidst Trade Negotiations
India and Canada held discussions today aimed at bolstering economic relations, signaling a potential thaw in ties that cooled following recent diplomatic tensions.
Commerce and Industry Minister Piyush Goyal met with Canada’s Minister of International Trade Maninder Sidhu yesterday to explore mutually beneficial opportunities for businesses in both countries. “We discussed ways to find mutually beneficial opportunities for our businesses to capitalise on the complementarities offered by our two economies. I emphasised that economic, trade and investment ties between India and Canada should be grounded in the principles of mutual respect, trust and balance,” Goyal stated in a post on X. Sidhu echoed this sentiment, noting that they are “exploring new trade opportunities in clean technology, AI, agriculture, critical minerals, and other key sectors.”
These discussions are particularly significant as negotiations for a broader free trade agreement were paused in 2023, coinciding with allegations made by then-Prime Minister Justin Trudeau regarding a potential Indian link to the killing of Hardeep Singh Nijjar – accusations India has dismissed. Prior to the pause, both nations had relaunched negotiations in March 2022 for an Early Progress Trade Agreement (EPTA), holding over half a dozen rounds of talks. A successful trade agreement would significantly reduce tariffs and promote investment between the two nations, boosting economic growth.
Recent trade data indicates India’s exports to Canada rose 9.8 percent to USD 4.22 billion in 2024-25, while imports dipped slightly to USD 4.44 billion. This renewed dialogue follows Prime Minister Narendra Modi’s conversations with Canadian officials at the G7 summit in June, suggesting a concerted effort to rebuild economic cooperation. Further discussions are expected as Canadian Foreign Minister Anita Anand is scheduled to begin a visit to New Delhi tomorrow.
