India and Canada Reset Economic Ties with Ambitious Free Trade Agreement Goal by 2026

India and Canada have reset and strengthen with the economic ties ambitious goal to finalizing the Free Trade Agreement by the end of 2026. As the current bilateral trade currently valued at around $17 billion both the nations now expanding to the $50 billion by 2030.

India and Canada Push to Finalise CEPA by End of 2026

India and Canada are negotiating the Comprehensive Economic Partnership Agreement (CEPA), which is expected to function as the broad based free trade agreement.

Commerce and Industry Minister Piyush Goyal, who is currently in Ottawa for official discussions and he confirmed that the both governments are aiming to conclude negotiations by the end of this year or earlier if possible.

The third round of the CEPA negotiations is taking place in Ottawa from May 25 to May 29 after the successful completion of two earlier rounds.

Why the India-Canada Free Trade Agreement Matters

A completed CEPA could significantly reshape the economic relations between India and Canada.

The agreement is expected to improve the market access, reduce trade barriers and encourages the investment flows between both countries.

Key sectors likely to benefit includes the,

• Energy
• Agri-food
• Technology
• Education
• Pharmaceuticals
• Manufacturing
• Services trade

For both the economies, this agreement offers strategic diversification opportunities amid a changing global trade dynamics.

Trade Target Raised to $50 Billion by 2030

One of the major announcements from the Ottawa discussions is the ambitious bilateral trade target.

India and Canada want to increase the trade from the $17 billion to $50 billion by 2030.

That means to triple the current trade volume within the next few years.

This reflects a strong confidence in the economic potential of the partnership.

The trade expansion strategy is also expected to focus on to the both merchandise and services.

Current Trade Between India and Canada

India and Canada already shares the important commercial ties.

India’s Major Exports to Canada

India exports the wide range of products which includes the,

• Pharmaceuticals
• Iron and steel
• Seafood
• Cotton garments
• Chemicals
• Electronic goods

Canada’s Major Exports to India

India imports the several critical products from Canada, such as the,

• Pulses
• Coal
• Fertilisers
• Petroleum crude
• Pearls and semi-precious stones
• Paper products

This trade relationship already spans the multiple sectors with room for expansion.