India, Canada Begin Second Round of FTA Talks

• India Canada resume second round of trade talks
• CEPA aims to boost bilateral trade and investment
• Agreement targets stronger economic cooperation across key sectors

India and Canada have initiated the second round of negotiations for a proposed free trade agreement, signalling renewed momentum in bilateral economic engagement. The discussions are part of efforts to finalise a Comprehensive Economic Partnership Agreement (CEPA), aimed at strengthening trade, investment, and overall economic cooperation between the two countries.

The latest round of talks builds on earlier negotiations relaunched in March 2026, following a period of diplomatic strain that had stalled progress since 2023. Both nations are now working to establish a structured framework covering goods, services, investment, and regulatory cooperation.

Officials from both sides are focusing on key sectors such as agriculture, technology, clean energy, and critical minerals, where mutual complementarities exist. The agreement is expected to enhance market access, reduce tariffs, and streamline trade processes, enabling businesses in both countries to expand operations more efficiently.

The renewed engagement also aligns with broader strategic objectives. India and Canada have set ambitious targets to significantly increase bilateral trade over the coming years, with discussions earlier indicating a goal of scaling trade volumes substantially by 2030.

Also Read: India-UK Pact to Strengthen Industry Supply Chains

This round of negotiations reflects a pragmatic shift toward rebuilding economic ties despite past geopolitical challenges. Both governments have expressed intent to prioritise economic collaboration, recognising the importance of diversifying trade partnerships in an evolving global landscape.

From India’s perspective, the agreement could open greater access to North American markets and secure critical resources such as potash and uranium. For Canada, deeper engagement with India offers opportunities to tap into one of the world’s fastest-growing major economies and reduce reliance on traditional trading partners.

Industry stakeholders consider the current talks to be a good signal for a balanced and mutually beneficial trade framework. Problems still persist - especially with sensitive sectors and regulatory alignment - but negotiations going on show strong political will on both sides.

To summarize, the second round of talks represents an important milestone in the process of signing a trade agreement that has been awaited for a long time and may change the economic relations between India and Canada. The agreement may result in growth over the long term and strategic cooperation.