India and Canada are aiming to more than double their annual bilateral trade to C$70 billion by 2030, as the two countries work to strengthen economic cooperation and conclude negotiations on a Comprehensive Economic Partnership Agreement (CEPA). The target represents a renewed push to expand commercial ties across goods, services, investment and emerging technology sectors.
The trade ambition gained fresh momentum after Indian Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney spoke on October 13, 2026. Both leaders reaffirmed their commitment to advancing the proposed trade agreement, while Canada is pursuing new business partnerships through a major trade mission to India. The two governments have set an objective of concluding CEPA negotiations by the end of 2026, although the agreement is not yet finalized.
Key Takeaways
- India and Canada aim to raise annual two-way trade to C$70 billion by 2030.
- Bilateral trade in goods and services totalled C$30.4 billion in 2025.
- The proposed Comprehensive Economic Partnership Agreement is targeted for completion by the end of 2026.
- Nearly 300 Canadian delegates are participating in a trade mission to Mumbai and Bengaluru during October 12–17.
- Priority areas include clean energy, aerospace, information technology, life sciences, agriculture and food products.
- Achieving the target will depend on the trade agreement, business investment, market access and actual demand.
India-Canada Trade Target: What the Two Countries Plan
The C$70 billion objective is intended to expand the commercial relationship between two economies with different but potentially complementary strengths. India offers a large consumer market, a growing manufacturing base and an expanding digital economy. Canada brings capabilities in energy, agricultural products, aerospace, advanced technology, life sciences and natural resources.
According to the Canadian government, two-way trade in goods and services reached C$30.4 billion in 2025. Reaching C$70 billion annually by 2030 would therefore require trade to grow substantially over the next several years.
The target is a bilateral ambition rather than a guarantee of future trade volumes. Its achievement will depend on whether companies can establish new commercial relationships, expand exports and imports, and overcome regulatory or logistical barriers.
India-Canada Trade: Key Figures
| Indicator | Figure |
|---|---|
| Bilateral trade in goods and services, 2025 | C$30.4 billion |
| Bilateral merchandise trade, 2025 | C$13.6 billion |
| Target annual bilateral trade by 2030 | C$70 billion |
| Canadian merchandise exports to India, 2025 | C$3.9 billion |
| Canadian merchandise imports from India, 2025 | C$9.7 billion |
| Target for concluding CEPA negotiations | End of 2026 |
Source: Government of Canada. Figures refer to different trade categories; merchandise trade is a subset of total goods-and-services trade.
The figures show that services are an important part of the relationship alongside physical goods. Education-related travel has historically been a significant component of Canadian service exports, while Indian businesses supply Canada with services and manufactured products.
What Is the India-Canada CEPA Trade Agreement?
The Comprehensive Economic Partnership Agreement, or CEPA, is a proposed trade framework designed to deepen economic engagement between the two countries.
Negotiations cover a broad commercial relationship rather than a single industry. The proposed framework is expected to address goods and services trade, investment, agriculture and agri-food, digital trade, mobility and sustainable development.
A completed agreement could help businesses understand the conditions under which they can sell products and services in each other’s markets. Depending on the final terms, it could also improve market access, establish clearer trade rules and create opportunities for investment and cross-border partnerships.
However, the benefits will depend on the final agreement. Tariff reductions, product exclusions, services commitments, regulatory requirements and implementation timelines cannot be assumed until the terms are agreed and the necessary domestic procedures are completed.
Both governments have expressed a shared objective of concluding negotiations by the end of 2026. As of October 14, 2026, the agreement remains under negotiation.
Nearly 300 Canadian Business Delegates Visit India
Canada’s trade push includes a Team Canada Trade Mission running from October 12 to October 17, 2026, with activities in Mumbai and Bengaluru. Led by Canadian International Trade Minister Maninder Sidhu, the delegation includes nearly 300 business representatives.
The mission is intended to connect Canadian companies with Indian decision-makers, industry groups, potential customers and business partners. Meetings and sector-specific engagements may help companies assess demand, identify distributors and explore longer-term commercial arrangements.
The initiative is also part of Canada’s broader effort to diversify trade beyond its traditional dependence on the United States. India, with its large domestic market and growing industrial and technology sectors, is one of the markets Canada is seeking to develop.
The delegation’s priority sectors include:
| Sector | Potential areas of cooperation |
|---|---|
| Aerospace and space | Aircraft systems, satellites, manufacturing and maintenance |
| Clean technology and energy | Renewable energy, water treatment, energy transition and storage |
| Information and communications technology | Artificial intelligence, cybersecurity and semiconductors |
| Life sciences | Pharmaceuticals, medical technology and healthcare innovation |
| Forestry and wood products | Lumber, pulp, paper and engineered wood |
| Agri-food | Food ingredients, specialty crops and value-added products |
These are areas being emphasized by the Canadian trade mission. The list represents potential commercial opportunities, not confirmed contracts or guaranteed investment.
Energy and Critical Minerals Could Become Major Trade Drivers
Energy cooperation is an important part of the wider India-Canada economic relationship. India needs reliable energy supplies to support industrial growth and rising consumption, while Canada has resources and expertise in several conventional and lower-carbon energy sectors.
In March 2026, the two countries announced a Strategic Energy Partnership covering areas such as liquefied natural gas, liquefied petroleum gas, uranium, solar power and hydrogen. They also highlighted cooperation on critical minerals and energy supply chains.
One notable development was an agreement involving the Government of India and Canadian company Cameco to supply nearly 22 million pounds of uranium to India between 2027 and 2035. The arrangement is intended to support India’s nuclear energy requirements.
Cooperation in these areas could help diversify supply chains and support India’s long-term energy plans. However, the scale and timing of future trade will depend on contract implementation, infrastructure, regulation and market conditions.
Critical minerals could also offer opportunities as countries seek secure supplies for batteries, electronics and clean-energy technologies. Any expansion will depend on the commercial viability of projects and the ability of companies to meet technical and regulatory requirements.
Technology, Pharmaceuticals and Manufacturing Offer Further Opportunities
Technology is another potential growth area. Canada’s trade mission has identified artificial intelligence, cybersecurity and semiconductors among the information and communications technology priorities.
India’s large technology workforce and expanding digital market could create opportunities for Canadian companies offering specialized software, research capabilities and advanced technology products. Indian firms could also explore partnerships in Canada for IT services, engineering, software development and digital solutions.
Life sciences may provide another channel for growth. Canadian expertise in pharmaceutical research and medical technology could complement India’s established pharmaceutical manufacturing sector and expanding healthcare demand.
Manufacturing and industrial supply chains could also benefit from stronger commercial links. Canadian companies may find opportunities to supply specialized equipment, materials and technologies, while Indian manufacturers could expand sales of machinery, pharmaceuticals, engineering products and other manufactured goods into Canada.
Such partnerships would require businesses to address local standards, certification requirements, intellectual property rules and customer needs. A trade agreement could help establish a clearer framework, but companies would still need competitive products and viable commercial models.
What the Trade Target Means for Indian Businesses
For Indian exporters, deeper economic engagement with Canada could create opportunities to reach new customers and diversify revenue sources. Companies in pharmaceuticals, engineering, IT services, machinery, precious stones and metals, and selected manufacturing categories may be able to explore additional demand.
Small and medium-sized enterprises could also benefit if the trade mission leads to partnerships with Canadian distributors, suppliers or technology providers. However, exporting to a new market requires attention to certification, shipping costs, payment terms, product standards and after-sales support.
Canadian businesses, meanwhile, could gain access to India’s expanding consumer and industrial markets. Opportunities may emerge in clean energy, aerospace, advanced technology, healthcare and food-related industries.
Investment could complement trade by helping companies build production facilities, research partnerships, distribution networks and service operations. The two governments have also discussed strengthening financial and investment cooperation.
The trade target should not be interpreted as a prediction that every industry will grow at the same rate. Gains will depend on the final trade rules, competitiveness, business demand and the ability of firms to convert meetings into actual transactions.
Challenges That Could Affect the 2030 Goal
Despite renewed engagement, reaching C$70 billion in annual trade will require more than diplomatic announcements.
First, the CEPA negotiations must produce terms acceptable to both sides. Differences over market access, tariffs, regulations and sensitive industries can complicate trade negotiations. The final agreement will determine how much additional access companies receive and when its provisions take effect.
Second, businesses must find commercially attractive opportunities. Trade delegations can facilitate introductions, but they do not automatically produce purchase orders, investments or long-term contracts.
Third, companies must manage practical obstacles such as shipping costs, product standards, customs procedures, exchange-rate movements and competition from other suppliers.
Finally, the broader political relationship will influence business confidence. Regular dialogue, predictable rules and continued cooperation can help companies make long-term decisions, while uncertainty may delay investment or expansion.
The target is therefore best understood as a policy ambition that requires progress across negotiations, commercial partnerships and implementation.
The Bigger Picture
The India-Canada trade initiative reflects a wider effort by both countries to diversify economic relationships and strengthen supply chains. Canada is seeking additional markets for its exporters, while India is pursuing opportunities to expand exports, attract investment and access energy, technology and specialized industrial capabilities.
The proposed CEPA could provide an institutional foundation for that effort. Its importance will depend on the final commitments and how effectively businesses use them. Energy, technology, agriculture, life sciences and aerospace are among the areas where cooperation could develop, but the overall outcome will be shaped by actual demand and commercial execution.
Looking Ahead
The next major milestone is progress toward concluding CEPA negotiations by the end of 2026. Prime Minister Narendra Modi is also scheduled to visit Canada in December, according to the Canadian prime minister’s office. The visit could provide another opportunity for the leaders to discuss economic cooperation, although a completed trade agreement should not be assumed before an official announcement.
Over the following years, businesses and policymakers will need to turn the trade target into measurable results through new export orders, investment, services contracts and sustained commercial partnerships. Progress toward C$70 billion will offer a clearer indication of whether the renewed relationship is translating into deeper economic integration.
Frequently Asked Questions
1. What is India’s trade target with Canada by 2030?
India and Canada aim to increase annual two-way trade to C$70 billion by 2030, equivalent to approximately ₹4.65 lakh crore under the conversion cited by the governments.
2. How much did India and Canada trade in 2025?
Bilateral trade in goods and services totalled C$30.4 billion in 2025, according to the Government of Canada.
3. What is the India-Canada CEPA?
CEPA stands for Comprehensive Economic Partnership Agreement. It is a proposed framework intended to deepen trade and investment ties across goods, services and other areas of economic cooperation.
4. When is the India-Canada trade agreement expected to be completed?
Both countries have stated their objective of concluding negotiations by the end of 2026. The agreement remains under negotiation as of October 14, 2026.
5. Which sectors could benefit from stronger India-Canada trade?
Potential areas include energy, clean technology, aerospace, information technology, semiconductors, life sciences, pharmaceuticals, agriculture, food products and forestry.
6. Will the trade target guarantee more exports for Indian companies?
No. The target is an ambition, not a guarantee. Actual results will depend on the agreement’s final terms, market demand, business competitiveness and the implementation of commercial partnerships.
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