India and Canada have agreed to restart negotiations for a Comprehensive Economic Partnership Agreement (CEPA), targeting a doubling of bilateral trade to $50 billion by 2030. The breakthrough came during a meeting between Prime Minister Narendra Modi and Canadian PM Mark Carney on the sidelines of the G20 Summit in Johannesburg.
Key Takeaways
- India and Canada to begin CEPA negotiations, aiming for $50 billion bilateral trade by 2030
- Leaders agreed to advance cooperation in trade, investment, defence, energy, and space
- New Australia-Canada-India Technology and Innovation (ACITI) Partnership launched
- PM Carney supported India hosting AI Summit in February 2026
CEPA Negotiations Resume After Diplomatic Thaw
Prime Ministers Narendra Modi and Mark Carney agreed to “begin negotiations on a high-ambition Comprehensive Economic Partnership Agreement” during their meeting in South Africa. The Indian Ministry of External Affairs confirmed the development, marking a significant warming of bilateral relations.
The Prime Minister’s Office stated on X: “PM @narendramodi had a very productive meeting with PM @MarkJCarney of Canada. The two leaders welcomed the strong momentum in bilateral ties and agreed to advance cooperation in trade, investment, technology, innovation, energy, education, defence and space.”
Ambitious Trade Targets and Nuclear Cooperation
The proposed CEPA aims to dramatically increase bilateral trade from current levels to $50 billion within six years. Both nations reaffirmed their long-standing civil nuclear energy partnership and are discussing expanded collaboration, including long-term uranium supply arrangements.
Beyond the trade deal, leaders welcomed the new Australia-Canada-India Technology and Innovation (ACITI) Partnership. This trilateral initiative will enhance cooperation in critical technologies, nuclear energy, supply chain diversification, and artificial intelligence.
Overcoming Past Diplomatic Tensions
Trade talks had previously stalled following diplomatic tensions in 2023 after the killing of Khalistani leader Hardeep Singh Nijjar. Then-Prime Minister Justin Trudeau had stated his government was “actively pursuing credible allegations” linking Indian government agents to the murder, which India dismissed as “absurd and motivated”.
Since taking office in March, Prime Minister Carney has worked to normalize relations, with both countries appointing new ambassadors this summer. Carney emphasized the importance of securing better trade access to “one of the world’s largest and fastest-growing economies,” according to Bloomberg reports.
The leaders stressed the importance of regular high-level exchanges, with Prime Minister Modi inviting his Canadian counterpart to visit India. Both countries continue dialogue between their law enforcement and national security agencies.
