India and Canada Renew Trade Negotiations, Targeting $50B by 2030

Post by : Bianca Suleiman

In a pivotal move to bolster economic relations, India and Canada have agreed to restart discussions on a comprehensive free trade agreement. This decision came during a meeting between Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney at the G20 Summit in Johannesburg, marking a significant improvement in diplomatic relations after recent tensions.

The Comprehensive Economic Partnership Agreement (CEPA) is expected to double the bilateral trade to $50 billion by 2030. The deal aims not only to enhance trade relations but also to foster partnerships in technology, education, energy, defense, and space exploration. Both countries are actively seeking long-term agreements for uranium supply and enhancing civil nuclear cooperation.

Additionally, they endorsed the Australia-Canada-India Technology and Innovation (ACITI) Partnership, focusing on critical technologies such as artificial intelligence and nuclear energy, as well as diversifying supply chains. Carney further expressed support for India’s hosting of the AI Summit in February 2026, reflecting a mutual interest in innovative developments.

The bilateral relationship had been strained in 2023 due to allegations surrounding the killing of Khalistani leader Hardeep Singh Nijjar in Canada, which India categorically denied. Under Carney's leadership since March, both nations are striving to mend ties through new ambassador appointments and ongoing discussions on trade, law enforcement, and security.

The G20 summit emphasized the significance of high-level diplomatic engagement. Modi extended a personal invitation to Carney to visit India, underscoring a commitment to nurturing the relationship. With CEPA negotiations back in motion, both countries are signaling a robust commitment towards enhanced economic and technological collaboration in the future.