PM Modi Announces $50 Billion India-Canada Trade Target, Calls Ties a “Light-Year Leap”

Declaring that India-Canada ties have entered a decisive new phase, Prime Minister Narendra Modi on Monday unveiled an ambitious roadmap to take bilateral trade to $50 billion. Addressing the India-Canada CEO Forum, PM Modi described relations under Canadian Prime Minister Mark Carney as having taken a “light-year leap,” signalling what he called a strategic reset between the two democracies.

What signals a “light-year leap” in India-Canada ties?

Opening his address with optimism, PM Modi set the tone for what he described as a historic shift in relations.

"Friends, today we are going to write a new chapter in India-Canada relations," he said. "Prime Minister Carney has not even completed one year in office, but our relations have taken a light-year leap. In the last few months, trust has grown, clarity has emerged, and a new momentum has been built."

He emphasised that this renewed engagement is unfolding amid global volatility.

"And this is happening at a time when the world is going through a period of economic uncertainty. The global economic order is under pressure. At such a time, the deliberation of business leaders from India and Canada will prepare a new blueprint for our partnership," said PM Modi.

Framing the relationship around shared democratic values and economic heft, he added, "India and Canada are vibrant democracies, two major economies of the world, and societies based on shared values. Democracy, diversity, and development inspire us to move forward as natural partners."

How will the $50 billion trade vision be achieved?

At the heart of the reset lies a clear economic target.

"Prime Minister Carney and I took some important decisions to advance our shared vision. We are continuously moving forward to take bilateral trade to the level of 50 billion dollars. We will finalise the Comprehensive Economic Partnership Agreement as soon as possible."

PM Modi made it clear that governments can only enable and industry must execute.

“Governments can create frameworks and provide policy direction. However, the power to turn that vision into reality lies with all of you, my fellow business leaders.”

Projecting India as a growth engine, he said, “India is among the world’s fastest-growing major economies. Behind this transformation are strong domestic demand, a young population, large-scale investment, and the power of digital technology. This is the result of our continuously running Reform Express. From policy simplification to Production Linked Incentives (PLI), and from logistics modernisation to tax and bankruptcy reforms, we are strengthening the ease of doing business in every sector.”

Positioning the partnership in macroeconomic terms, PM Modi added, “When India and Canada stand together, we don’t just connect two economies. We create an economic force of capital and capability. Our combined GDP is more than 6 trillion dollars. But our real strength lies in our ambitions. To move these shared ambitions forward, I will make some suggestions to you.”

Which five sectors will anchor the new partnership?

Laying out a structured roadmap, PM Modi identified five priority areas for deeper collaboration.

“First, Clean Energy: This is a priority for both countries. Today, we have increased cooperation in the field of nuclear energy and contracted for a long-term supply of uranium. A while ago, we had the opportunity to hear positive thoughts from the CEO of Cameco. We should move forward together in the fields of small modular reactors, advanced reactors, and the nuclear value chain,” he said, calling for joint progress in next-generation nuclear technology.

On critical minerals, he added, “We have also taken steps to create resilient supply chains for critical minerals. We can move forward by combining Canada’s innovation with India’s scaling capability in batteries and energy storage.”

Turning to infrastructure, he said, “The second area is Infrastructure and Capital Partnership: In this year’s budget, we have made a record allocation of 130 billion dollars for infrastructure. Under the National Infrastructure Pipeline, an investment of 1.3 trillion dollars is being made. Canada’s pension funds have invested 100 billion dollars in India. This shows deep trust. I invite you to become a part of India’s infrastructure growth story.”

On technology and AI, he proposed, “Third, AI: We can work together to create joint AI compute corridors and AI innovation sandboxes for startups.”

Expanding further, he said, “Fourth, Manufacturing and Technology: In electronics, aerospace, and engineering, we can strengthen global value chains by combining Canada’s technology and India’s scale.”

He added, “The fifth area is Food Processing: Today, mega food parks, cold chains, and food testing labs are being built rapidly in India. This could be another strong example of our win-win cooperation.”

How will partnerships move beyond capitals to provinces and states?

PM Modi stressed that the reset must extend beyond national capitals into regional ecosystems.

"Our partnership should not be limited only to national capitals. We must take it to the states and provinces. We must link Alberta's natural resources with the renewable ambitions of Gujarat and Rajasthan. We must combine Ontario's manufacturing strength with the industrial clusters of Tamil Nadu and Maharashtra. We must integrate Montreal's tech ecosystem with the innovation hubs of Bengaluru and Hyderabad. Only then can we turn this partnership from policy to prosperity."

In a lighter moment, he invoked cricket diplomacy, saying, “Some of you must be watching cricket. We were all happy to see Canada play in the T20 Cricket World Cup going on in India. Just like in T20 cricket, with fast decisions, fearless strokes, and match-winning partnerships, India and Canada will shape the future together."

"With this resolve, I invite all of you to join India's development journey," the Prime Minister concluded.

(With inputs from ANI)