PM Modi, Canadian FM Anand Push to Seal Trade Pact by Year-End

India and Canada are stepping up efforts to expand bilateral trade, with Prime Minister Narendra Modi and Canadian Foreign Minister Anita Anand discussing the importance of concluding a Comprehensive Economic Partnership Agreement (CEPA) by the end of 2026.

The discussions come as businesses from both countries sign commercial agreements and memoranda of understanding during a Canadian trade mission to India.

The proposed trade pact aims to reduce trade barriers, improve market access and strengthen economic cooperation. The two countries have also set a goal of doubling bilateral trade by 2030.

According to the Canadian government's readout, Modi and Anand discussed trade, investment, energy, education, culture, technology and security during their meeting in New Delhi on Wednesday.

They also highlighted the Team Canada Trade Mission, led by Canadian International Trade Minister Maninder Sidhu, as a step towards expanding commercial ties and strengthening Canada's engagement in the Indo-Pacific.

Modi described the meeting as productive and said India was committed to building a constructive and forward-looking strategic partnership with Canada.

Anand said the two countries had considerable potential to work together on trade, investment and security. She also pointed to recent high-level engagements as evidence of renewed momentum in bilateral relations.

BUSINESSES SIGN COMMERCIAL AGREEMENTS

Separately, Indian and Canadian entities signed commercial agreements and memoranda of understanding at a business ceremony in Karnataka on Friday, attended by Sidhu.

Speaking at a business reception in Bengaluru on Thursday, Sidhu highlighted opportunities for Canadian companies in India's technology and infrastructure sectors, including artificial intelligence, quantum computing, aviation, digital innovation, sustainability and smart mobility.

He cited Canadian companies already operating in India, including Kinaxis, OpenText, CGI, CAE, Magellan Aerospace, MDA Space and BCE Global Tech, as examples of established commercial links between the countries.

Sidhu also pointed to opportunities for collaboration in aviation infrastructure, citing Bengaluru airport's expansion plans and the involvement of Canadian companies in airport operations and technology. Fairfax Financial, a Canadian company, has investments in the airport, while Genetec, Transoft Solutions and RBH Access are among the firms working there.

“As we look to double our non-U.S. exports over the next decade, India is a market we can’t afford to ignore,” Sidhu said, citing India's economic growth and its large consumer market.

CEPA NEGOTIATIONS ENTER NEXT ROUND

According to India's Ministry of Commerce and Industry, 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 is scheduled to take place in New Delhi in early November, as both sides work towards their year-end target.

Bilateral trade between India and Canada reached USD 7.96 billion in the 2025-26 financial year, according to government data. Official estimates project that the proposed agreement could increase bilateral trade by USD 4.4 billion to USD 6.5 billion and generate GDP gains of USD 3.8 billion to USD 5.9 billion for Canada by 2035.

MODI TO VISIT CANADA IN DECEMBER

The renewed economic engagement comes ahead of Modi's scheduled visit to Canada on December 11 and 12, confirmed by the High Commission of India in Ottawa.

Modi and Canadian Prime Minister Mark Carney have agreed to build on the recent momentum in bilateral relations, with cooperation in trade, energy, technology, security and people-to-people exchanges among the key priorities.

The two leaders have reaffirmed their commitment to concluding CEPA negotiations at the earliest opportunity and working towards doubling bilateral trade by 2030.

With inputs from ANI