India and Canada are accelerating negotiations to finalize the Comprehensive Economic Partnership Agreement by the end of 2026. The initiative, supported by a major trade mission currently in India, aims to reverse a recent 8.23% contraction in bilateral trade and achieve a $70 billion target by 2030.
Trade officials from India and Canada have intensified discussions this week to finalize the Comprehensive Economic Partnership Agreement (CEPA) before the end of 2026. This push comes immediately after the fifth round of technical negotiations concluded in Ottawa on October 9. To support this momentum, Canada has launched its largest trade mission to India in over 30 years, with nearly 300 delegates exploring opportunities across multiple industries.
The urgency behind these talks is driven by a recent slowdown in economic cooperation. Bilateral goods trade between the two nations fell by 8.23% to $7.95 billion during the 2025-26 period, down from $8.7 billion in 2024-25. Policymakers are now focused on reversing this trend to achieve an ambitious long-term goal of $70 billion in trade by 2030. Commerce and Industry Minister Piyush Goyal and his Canadian counterpart, Mary Ng, are leading efforts to resolve outstanding regulatory barriers and reduce import duties to make the agreement attractive for businesses in both countries.
Key sectors identified for deeper collaboration include energy, specifically Liquefied Natural Gas (LNG), critical minerals, aerospace, artificial intelligence, and agriculture. The trade mission, led by International Trade Minister Maninder Sidhu, is currently in India from October 12 to 17 to facilitate these partnerships. If finalized, the CEPA could provide a more stable environment for investors and exporters, potentially lowering the costs of doing business and opening up new market access for Indian services and Canadian resources.
Despite the push for a year-end deadline, several hurdles remain that could complicate the final agreement. Negotiations often face resistance regarding visa quotas, which remain a sensitive topic for service providers. Additionally, protecting local interests in the agriculture sector—such as concerns over pulses and dairy imports—continues to be a major point of friction for both sides. Investors should track progress on the legal drafting of the agreement, as any inability to resolve these specific policy disagreements could lead to delays beyond the current 2026 target.
Geopolitical factors and trade tensions involving other nations also remain a background risk, as they can influence tariff structures and global supply chains. For now, the focus shifts to whether negotiators can bridge these gaps in the coming weeks. The next important update for businesses will be the progress made on the draft text during the upcoming ministerial meetings scheduled before the year concludes.