New Delhi | India and Canada have agreed to resume negotiations for a Free Trade Agreement (FTA) with an aim to increase the two-way trade to USD 50 billion by 2030, according to Commerce and Industry Minister Piyush Goyal.
An FTA or Comprehensive Economic Partnership Agreement (CEPA) has many strategic elements to it and it is a demonstration of the trust between the two countries, Goyal said here at an event on Monday.
The pact would give confidence to investors, businesses of both sides, he said.
"We have agreed to begin negotiations on a high-ambition CEPA and double the trade between the two nations by 2030," he said, adding the two countries are natural allies and do not compete with each other.
The strengths of India and Canada can become a force multiplier for businesses and investors, Goyal said.
"There is a lot that we can learn from Canada and a lot we can offer Canada. There is a lot of potential on critical minerals, critical minerals processing technologies. There is a good possibility on nuclear energy - particularly with our engagement with Canada on Uranium supplies," he said, adding, "we can diversify our supply chains on both sides".
In 2023, Canada had paused negotiations for an FTA with India. The India-Canada relations hit rock bottom following then Prime Minister Justin Trudeau's allegations in 2023 of a potential Indian link to the killing of Hardeep Singh Nijjar. India had dismissed Trudeau's accusation as "absurd".
In March 2022, the two countries had re-launched negotiations for an interim agreement, officially dubbed as Early Progress Trade Agreement (EPTA).
Over half a dozen rounds of talks have been held on the trade pact so far.
Normally in a trade agreement, two countries significantly reduce or eliminate customs duties on the maximum number of goods traded between them. They also liberalise norms for promoting trade in services and attract investments.
India's exports to Canada rose 9.8 per cent to USD 4.22 billion in 2024-25 from USD 3.84 billion in 2023-24. Imports, however, dipped 2.33 per cent to USD 4.44 billion in the last fiscal year from USD 4.55 billion in 2023-24.
The renewed vibrancy in ties between the two countries followed Prime Minister Narendra Modi's talks with his Canadian counterpart Mark Carney on the sidelines of the G7 summit at Canada's Kananaskis in June.
Bilateral trade in goods and services between India and Canada stood at USD 18.38 billion in 2023.
There are about 2.9 million Indian diaspora and over 4,27,000 Indian students in Canada.
