India and Canada Sign Trade Deals, Target FTA

India and Canada have signed commercial agreements as both countries aim to conclude negotiations for a proposed CEPA by the end of 2026, with opportunities spanning technology, aviation, sustainability and bilateral trade.

India and Canada have signed a series of commercial agreements and memoranda of understanding (MoUs) as both countries seek to strengthen bilateral trade and conclude negotiations for a proposed Comprehensive Economic Partnership Agreement (CEPA) by the end of 2026. The agreements were signed during the Canada-India Business Ceremony in Karnataka, in the presence of Canada's Minister of International Trade, Maninder Sidhu.

The commercial agreements come amid renewed efforts by New Delhi and Ottawa to expand economic cooperation and improve market access for businesses in both countries. According to the Ministry of Commerce and Industry, the two sides have reaffirmed their target of concluding negotiations for the proposed trade agreement by the end of this year.

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The fifth round of CEPA negotiations took place in Ottawa from October 5 to 9. Discussions covered market access for goods and services, investment, rules of origin, intellectual property rights and trade remedies. The next round of negotiations is scheduled to take place in New Delhi in early November.

The proposed agreement aims to reduce trade barriers and create additional opportunities for businesses operating in both markets. Bilateral trade between India and Canada reached approximately USD 7.96 billion in the financial year 2025-26, according to government data. Official estimates indicate that the CEPA could increase bilateral trade by USD 4.4 billion to USD 6.5 billion and generate an estimated USD 3.8 billion to USD 5.9 billion in gross domestic product gains for Canada by 2035.

Speaking at a business reception in Bengaluru as part of the Team Canada Trade Mission to India, Sidhu highlighted opportunities for collaboration in artificial intelligence, quantum computing, aviation infrastructure, digital innovation, sustainability and smart mobility.

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He also pointed to existing Canadian business investments and operations in India, including companies working in technology, aerospace and airport infrastructure. The visit reflects both countries' efforts to build commercial partnerships and expand cooperation across emerging industries as negotiations for the proposed trade pact continue.