India-Canada Free Trade Agreement Negotiations

India and Canada have initiated the second round of negotiations for a bilateral free trade agreement, aiming to finalize the deal by the end of the year.

Negotiation Details

• The five-day talks are being held in New Delhi.
• These negotiations precede the scheduled visit of Commerce and Industry Minister Piyush Goyal to Canada to further enhance economic engagement.

Objectives

• Both countries aim to increase bilateral trade to $50 billion by 2030.
• The negotiations are part of the India-Canada Comprehensive Economic Partnership Agreement (CEPA).

Background

• The first round of negotiations took place in March following Canadian Prime Minister Mark Carney's meeting with Prime Minister Narendra Modi.
• Diplomatic relations have improved compared to the period under former Canadian Prime Minister Justin Trudeau.

Key Agreements and Trade Goals

• Prime Ministers Modi and Carney set a year-end target for CEPA completion.
• Agreements to deepen collaboration in energy and critical mineral sectors.
• Aspiration to expand bilateral trade to CAD 70 billion/Rs 4.65 lakh crore by 2030.

Current Trade Statistics

India-Canada bilateral trade in goods was valued at $8.66 billion in 2024-25.

Exports and Imports

• India's Exports to Canada:
  • Pharmaceutical products
  • Machinery parts and mechanical appliances
  • Iron and steel articles
  • Electronic goods
  • Organic chemicals
  • Jewellery, gems, and precious stones
  • Garments and textiles
  • Seafood
  • Engineering goods and auto parts
• India's Imports from Canada:
  • Pulses
  • Fertilisers
  • Mineral fuels
  • Wood pulp
  • Gems and precious stones
  • Aircraft parts
  • Machinery parts
  • Iron and aluminium scrap

Services Sector

India's IT sector plays a major role in services exports to Canada.