India-Canada Trade Status
Even if diplomatic relations have thawed, the commerce ministry is giving priority to current free trade agreements with a number of nations, thus it is doubtful that FTA discussions with Canada would resume this year.
Although relations between Canada and India may be improving, an official told Moneycontrol that the government is prioritizing agreements with the US, the EU, and a few other nations, so it is doubtful that free trade agreement (FTA) negotiations will resume this year.
Ongoing Trade Negotiations
To finalize free trade agreements as soon as possible, the commerce ministry is also negotiating with New Zealand, Peru, Chile, Oman, and Qatar.
“There is a broad rewarming of connections; commerce was not the reason why earlier discussions broke down. Canada could not be at the top of the list since the commerce department is quite busy with several free trade agreements,” the government official, who spoke on condition of anonymity, said. “Problem of prioritization exists because there must be bandwidth for discussions.”
Trade and Cooperation Areas
India and Canada decided on October 13 to start ministerial-level talks on bilateral trade and investment as soon as possible.
Along with strengthening institutional capacity at their high commissions and consulates, the two sides also committed to work together on essential minerals, energy, science and technology, agriculture, and artificial intelligence. Collaboration on civil nuclear is also on the table.
Historical Trade Challenges
After a ten-year break, the two parties resumed FAT negotiations in March 2022, and they continued for nine rounds until July 2023.
When pro-Khalistani sentiment surged in Canada and then-prime minister Justin Trudeau revealed in parliament that there was evidence connecting Indian government agents to the killing of Sikh separatist Hardeep Singh Nijjar, talks were halted in September 2023.
Ottawa and New Delhi have taken action to mend the strained ties after Trudeau’s departure in January 2025. On the fringes of the G7 conference in June, Prime Minister Narendra Modi and his Canadian colleague Mark Carney met bilaterally.
In order to clear the path for a Comprehensive Economic Partnership Agreement (CEPA), the two leaders emphasized the need of resuming the stalled discussions on the Early Progress Trade Agreement (EPTA).