India and Canada Resume Trade Talks, Explore New Economic Opportunities
Commerce Minister Piyush Goyal and Canadian Trade Minister Maninder Sidhu have held significant discussions to strengthen economic ties between the two nations, marking a potential thaw in relations after diplomatic tensions.
Key Takeaways
- Ministers discussed mutually beneficial opportunities across clean tech, AI, agriculture, and critical minerals
- India emphasized trade relations must be grounded in mutual respect and trust
- Talks come after Canada paused FTA negotiations in 2023
- Trade data shows growing Indian exports to Canada despite diplomatic challenges
Ministerial Discussions
In their recent exchange, Minister Goyal stated: “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.”
Canadian Minister Sidhu confirmed they are “exploring new trade opportunities in clean technology, AI, agriculture, critical minerals, and other key sectors.” Goyal later described the talks as a “productive discussion” with his Canadian counterpart.
Background: Stalled FTA Negotiations
The discussions gain significance as Canada had paused free trade agreement negotiations with India in 2023. Relations between the two countries deteriorated significantly following Prime Minister Justin Trudeau’s allegations of potential Indian involvement in the killing of Hardeep Singh Nijjar, which India dismissed as “absurd.”
Despite these challenges, the two countries had relaunched negotiations for an Early Progress Trade Agreement (EPTA) in March 2022, with over half a dozen rounds of talks conducted since then.
Trade Performance
Recent trade data reveals positive momentum in economic relations:
- India’s exports to Canada grew by 9.8% to USD 4.22 billion in 2024-25
- Imports from Canada decreased by 2.33% to USD 4.44 billion
- The trade gap narrowed significantly during this period
Diplomatic Engagement Continues
The renewed engagement follows Prime Minister Narendra Modi’s discussions with Canadian counterpart Mark Carney during the G7 summit in Kananaskis, Canada, in June. Canadian Foreign Minister Anita Anand is scheduled to visit New Delhi, indicating continued diplomatic efforts to normalize relations.
